Bangladesh state-owned LNG importer Rupantarita Prakritik Gas Company (RPGCL) is said to be mulling the cancelation of a tender for November delivery.
Citing two unnamed sources “with direct knowledge of the matter,” Reuters reported RPGCL received offers from Vitol and AOT Energy, but they were higher than prices under a long-term contract with Oman Trading International.
The report added the tender seeking 138,000 cubic meters of LNG for delivery on November 12-13 may now be canceled. The offers are said to also be higher than an earlier spot cargo import.
RPGCL hasn’t commented the matter.
The subsidiary of Petrobangla imported its first spot LNG cargo on September 25, after initially shortlisting 29 companies qualified to bid. RPGCL said on October 15 that the “procurement of next LNG cargo from spot market is under processing,” Kallanish Energy reports.
The company has two long-term LNG supply contracts. The first it’s a 15-year contract with Qatargas running until 2032. The deal covers the supply of 1.8-2.5 million tonnes per annum (Mtpa).
The second is a 10-year deal with Oman Trading International for the supply of 1-1.5 Mtpa, starting in 2019.
Up until last month, Bangladesh had imported 27 of the 40 planned LNG cargoes from Qatar this year, and 21 of the planned 24 cargoes from Oman.
This post appeared first on Kallanish Energy News.