Bangladesh committees advance six LNG cargo recommendations and defer JERA proposal

Bangladesh’s Cabinet Committee on Government Purchase recommended approval of six liquefied natural gas cargoes on 24 October, while a separate committee deferred a proposed direct-purchase framework with Japan’s JERA for legal review. The Bangladesh Sangbad Sangstha reported both outcomes on 25 October from virtual committee meetings chaired by Finance Minister Amir Khosru Mahmud Chowdhury.

The purchase committee considered two proposals from the Energy and Mineral Resources Division. One sought five cargoes from BP Singapore under direct procurement, with the option of additional cargoes if both sides agree. The recommended price formula was Japan-Korea Marker (JKM) minus US$0.17 per million British thermal units. The committee also recommended one Qatar Energy Trading cargo under an existing government-to-government contract, for delivery on 20 December, at JKM minus US$0.10 per MMBtu.

The report says the committee recommended the proposals for approval; it does not report that cargoes have been delivered or that procurement contracts have been executed. The first proposal was explicitly tied to direct procurement provisions in Bangladesh’s procurement law and rules. For the Qatar cargo, the proposed price differs from the existing long-term contract price, according to the report. The amounts are benchmark-linked formulas, not fixed all-in prices in the BSS account.

In a separate meeting of the Cabinet Committee on Economic Affairs, officials considered an in-principle proposal for direct LNG purchases from JERA Global Markets. The proposal also sought approval to sign a finalised short-term LNG sale-and-purchase agreement and term sheet between JERA and Petrobangla. The committee decided to send it to a later meeting after review by the Legislative and Parliamentary Affairs Division.

The two reports therefore describe different stages: six cargoes were recommended for purchase approval, while the JERA framework was deferred for legal vetting. BSS did not state a cargo quantity, price or delivery schedule for JERA. The announcements indicate continued work on LNG procurement but do not establish that the proposed purchases or JERA agreement are final or that deliveries have begun.