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Bangladesh Govt to purchase LNG from spot market for first time

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September 3, 2020: The government has decided to purchase 3,490,200 Mmbtu liquefied natural gas (LNG) from the spot market for the first time in the country with a cost of around Tk 1.33 billion.

The Cabinet Committee on Government Purchase (CCGP) approved a proposal in this regard at its meeting on Wednesday with Finance Minister AHM Mustafa Kamal in the chair. Nine other proposals were also approved during the meeting, reports BSS.

Briefing reporters virtually after the meeting, the finance minister described the decision to procure LNG from the spot market as a ‘very smart move’ as the government will be able to save Tk 300 million through the initiative.

Kamal also opined that this decision has opened up a new window in the energy sector as the government would now be able to procure LNG at a competitive price.

The finance minister said around Tk 17.95 billion will be required for these 10 approved proposals.

Out of the total Tk 17.95 billion, around Tk 6.31 billion will come from the Government of Bangladesh while the rest of around Tk 11.64 billion from the local banking sources.

Under the two procurement proposals from the Ministry of Agriculture, the BADC will procure 150,000 metric tonnes of TSP fertiliser from OCP, Morocco with around Tk 4.00 billion while the BADC will also import 210,000 metric tonnes of DAP fertiliser from OCP, Morocco with Taka 6.96 billion.

Under another purchase proposal, BCIC will procure 30,000 metric tonnes of bagged granular urea fertiliser from KAFCO, Bangladesh with Taka 685.2 million.

The CCGP meeting extended the timeframe for the Development Design Consultants (DDC) Ltd under the Dhaka Elevated Expressway PPP Project by another 24 months till September, 2022 with an additional cost of around Taka 62.4 million.

Under two separate proposals under the Ministry of Housing and Public Works, Padma Associates & Engineering Ltd was awarded the contract for building a 20-storey residential building on Rajarbagh Police Lines in the capital with around Taka 826.3 million.

The Joint Venture of BBL and DECL was awarded the contract for constructing another 20-storey 2nd police lines in Chattogram Metropolitan area with Taka 814.5 million.

The CCGP meeting also approved a joint venture proposal from Hong Kong River Engineering Co Ltd and China Civil Engineering Construction Corporation for dredging additional 4.19 million cubic metres at the outer bar at Mongla Port channel with an additional cost of Tk 883.5 million as variation.

Besides, two separate purchase proposals from the Bangladesh Rural Electrification Board (BREB) were approved.

Source: Financial Express

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