Govt okays 67.2 lakh LNG unit imports from Singapore

The Cabinet Committee on Government Purchase on Wednesday approved five proposals, including two for importing 67.2 lakh per million British thermal unit (MMBTU) LNG.

The import from Singapore's Vitol Asia Pte Limited will help meet the growing LNG demand in the country.

The approval came at a meeting of the committee held virtually with Finance Minister AHM Mustafa Kamal in the chair.

The finance minister said the government had decided to purchase LNG from the spot market this time to meet the growing demand, keeping intact its long-term agreements with different sources for procuring this natural gas.

He said the government often could not avail LNG under the long-term contracts, which is why it had been trying to procure the gas from the spot market.

In reply to a question, Kamal said Vitol Asia is not blacklisted in Bangladesh and the government usually makes procurement decisions considering the interest of the country.

He said no advance payment is needed for this procurement.

The finance minister also said the ministry concerned would be asked to check whether the Singaporean company is blacklisted in any country, adding that updates in this regard might be available in the next meeting.

Cabinet Division Additional Secretary Abu Saleh Mostafa Kamal said as per the proposal of the Energy and Mineral Resources Division, Petrobangla would procure 33.6 lakh MMBTU LNG from Vitol Asia under the 6th LNG cargo at a cost of around Tk310.99 crore. Per MMBTU of LNG of this cargo will cost around $9.3123.

He said under the 7th LNG cargo, Petrobangla would procure another 33.6 lakh MMBTU LNG from the same company at a cost of around Tk312.65 crore. Per MMBTU of LNG of this cargo will cost around $9.3611.

The meeting approved another proposal under which Padma Associates & Engineers Ltd would construct two 20-storey residential buildings for government officials in zone-A of Azimpur government colony at a cost of around Tk176.19 crore.

Prior to the meeting, a meeting of the Cabinet Committee on Economic Affairs was held virtually with the finance minister in the chair.

The food ministry apprised the meeting that the revised demand for food grains in the current fiscal year is 2,455,007 tonnes, including 1,864,829 tonnes of rice and 590,178 tonnes of wheat.

The meeting was informed that the government would have to collect another 1,449,529 tonnes of food grains in the current fiscal year.