Bangladesh’s RPGCL seeks spot LNG cargoes

Bangladesh's Rupantarita Prakritik Gas (RPGCL), a unit of state-owned Petrobangla, has issued a tender for two spot liquefied natural gas (LNG) cargoes after QatarEnergy declared force majeure to its LNG buyers.

According to a tender document, the delivery windows are March 15-16 and March 17-18.

The firm issued the tender to the 24 organizations that have signed the MSPA (master sale and purchase agreement) with Petrobangla.

The tender was issued on Wednesday, and it closed the same day.

Before this, RPGCL launched a tender for a January spot cargo in December last year.

LNG prices and ship charter rates skyrocketed on Monday after QatarEnergy stopped producing LNG at its giant Ras Laffan complex.

QatarEnergy declared force majeure to its affected LNG buyers on Wednesday.

Qatar is the main LNG supplier to Bangladesh via long-term LNG deals.

According to local media reports, Bangladesh’s power plants and factories risk fuel shortages within days after QatarEnergy invoked force majeure, forcing Petrobangla to scramble for costly spot cargoes.

Reports say that at least four spot cargoes are being sought for delivery in March.

Spot LNG prices have soared since the US and Israel launched their joint strikes against Iran on Febuary 28.

Platts, part of S&P Global Energy, assessed JKM — the benchmark price reflecting LNG delivered to Northeast Asia — on March 3 at $25.39/MMBtu, up from $10.70/MMBtu on February 27.

Bangladesh currently imports LNG via two FSRU-based facilities, both of which feature Excelerate Energy’s FSRUs.

The 138,000-cbm FSRU Excellence serves Bangladesh’s first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla.

Excelerate’s 138,000-cbm FSRU Summit LNG serves as the second LNG import facility operated by Summit.

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