The Advisory Council Committee on Economic Affairs (ACCEA) has approved the extension of liquefied natural gas (LNG) supply contracts for seven companies, ensuring a continued flow of LNG from the international spot market. This decision is particularly significant for Bangladesh’s ready-made garment (RMG) industry. The RMG sector relies heavily on natural gas for various operations, including heating, drying, and energy generation. The availability of LNG is crucial for maintaining production efficiency, meeting international order demands, and sustaining the livelihoods of millions of workers.
Petrobangla, the state-owned enterprise responsible for importing LNG, has been engaging these companies under the Master Sale and Purchase Agreement (MSPA). During a recent meeting chaired by Finance Adviser Salehuddin Ahmed, the ACCEA approved not only the contract extensions but also the use of LSP software for LNG imports until March 2025. Petrobangla has been importing LNG from 23 companies that operate in the international spot market, facilitating the energy needs of key sectors, including power, industry, and fertilizers.
The extension comes at a critical time, as the contract for eight of the listed companies expired on 17th December 17, while another six contracts will lapse on 2nd February 2025. With ongoing negotiations for MSPA agreements with 27 new companies expected to conclude in approximately 45 days, the ACCEA’s decision to extend contracts aims to address the urgent gas requirements of the country’s industries, including RMG.
In addition, the Advisory Council Committee on Government Purchase (ACCGP) has approved a proposal from Petrobangla to import one LNG cargo from the international spot market. The South Korean firm, Posco International Corporation, will supply this cargo for Tk692.99 crore, priced at US $ 14.69 per MMBtu. This strategic move is anticipated to bolster gas supplies for the RMG industry, ensuring that manufacturers can remain competitive and responsive to global market demands.
