Uncertainty Persists Over LNG Cargoes
Officials from Rupantarita Prakritik Gas Company (RPGCL) are still unable to clarify whether a scheduled carrier would arrive next Tuesday, raising doubts over the timely arrival of LNG cargoes in Bangladesh. Due to this delay, the Moheskhali LNG terminal in Cox’s Bazar has reduced its gas supply even more, bringing its total production down to 700 million cubic feet. In particular, the local company Summit Energy terminal delivered 520 million cubic feet, falling short of its earlier total production of 731.6 million cubic feet, while the US-owned Excelerate Energy terminal supplied 180 million cubic feet.
After a cargo arrival on Wednesday night, Summit’s port ran at full capacity, but further delays limited its supply. On August 22, Excelerate began full operations with a fresh cargo, increasing the domestic terminal supply to more than 700 million cubic feet and easing the situation. Despite a 3,800 million cubic foot national demand, the total amount of gas provided to the national grid is still just 2,360 million cubic feet. Although Moheskhali terminal yields typically vary from 1,050 to over 2,700 million cubic feet, the overall energy problem has been intensified by the continuous shortage and a minor fall from domestic fields.
Industrial facilities, power plants, CNG filling stations, and residential customers were immediately relieved by a temporary increase in gas supply; however, low pressure still interferes with continuous operation in some places. The situation is causing generation disruptions for gas-dependent power facilities, according to Bangladesh Power Development Board (BPDB) officials. However, to maintain consistent electricity supplies and reduce load-shedding issues nationwide and in Chattogram, where available supply reached 810.78 megawatts against a demand of 924.68 megawatts, requiring 113.90 megawatts of load-shedding, authorities have kept furnace oil and coal-fired power plants operating.
The 44th cargo of the year, an LNG shipment from Singapore-based Aramco Trading Singapore Pte Ltd for $23.93 per MMBTU, is scheduled to arrive between September 1 and 2 to reduce the shortage. On August 19, the Cabinet Committee on Government Purchase authorized this important import along with plans to import 14 more LNG cargoes for state crises through direct purchase from seven different firms. Spot markets, long-term contracts, and emergency direct purchases are still the main strategies used by the government to secure consistent supply.
Furthermore, at its 41st meeting on August 24, the committee approved the procurement of two further LNG cargoes via international quotation to solve the energy gap. As the government works diligently to stabilize the country’s energy supplies, one cargo will be bought from South Korea’s POSCO International Corporation for delivery between September 13–14 at $24.625 per MMBTU, while another will come from the United Kingdom’s TotalEnergies for delivery between September 23–24 at $24.25 per MMBTU.
