The government is purchasing two cargoes of liquefied natural gas (LNG) at a price lower than that of the spot market.

Approval has been granted to procure two cargoes of LNG from Oman-based Maxwell International SPC at a rate of USD15.50 per MMBtu. This is expected to save the government approximately Tk370 crore compared to market prices.

The proposal was approved on Monday (August 17) during an emergency meeting of the Cabinet Committee on Government Purchase, held online. Finance Minister Amir Khassru Mahmud Chowdhury presided over the meeting.

According to the proposal from the Energy and Mineral Resources Division, the applicable JKM-based price for LNG scheduled for delivery in August 2026 was USD16.808 per MMBtu.

However, through negotiations with Maxwell International SPC, the price for the two cargoes was finalized at USD15.50 per MMBtu.

As per the proposal, the company will deliver the two cargoes on August 17–18 and August 22–23. Previously, the company's initial proposal was USD 13 per MMBtu.

However, taking into account volatility in the LNG market, higher prices in the spot market, time constraints in procuring cargoes from alternative sources, and potential financial savings, the evaluation committee negotiated and finalized the new price.

According to the Energy Division, on August 11, the price of JKM-based LNG in the spot market was USD21.289 per MMBtu.

Purchasing the two cargoes at USD15.50 compared to this market rate is expected to save the government an estimated USD30.75 million, or approximately Tk370 crore.

Meanwhile, proposals for purchasing an additional five cargoes of LNG through international quotation collection processes were also presented at the same meeting.

Among these, BP Singapore Pte Ltd has been recommended for approval as the supplier to purchase one cargo for August 23–24 and another for September 4–5.

The recommendation involves purchasing the August 23–24 cargo from BP Singapore at USD21.878 per MMBtu for a total cost of Tk92,75,060,833.92 including AIT, and the September 4–5 cargo at USD21.778 per MMBtu for a total cost of Tk92,32,666,369.92 including AIT.

These initiatives to procure LNG have been undertaken by collecting international quotations in compliance with relevant provisions of the Public Procurement Rules, 2025.

In the case of purchasing the two cargoes of LNG from Maxwell International, provisions also exist for direct procurement through negotiation.

In accordance with public procurement laws and regulations, and following the recommendations of the Cabinet Committee on Economic Affairs alongside relevant procurement rule provisions, opportunities for negotiation are permitted in such procurement processes.