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Govt sets specification of lean LNG for import

Govt sets specification of lean LNG for import

DHAKA: The government has set lean LNG specification seeking to import it in a gaseous state having gross heating value from 1,025-1,100 BTU (British Thermal Unit) per square cubic feet from spot market, said officials. The country prefers that the delivered LNG (liquefied natural gas) should not contain any sulfur or mercury or any other contaminants as the domestic gas is totally sulfur-free and sweet, managing director of Rupantarita Prakritik Gas Company Ltd (RPGCL) Md Quamruzzaman told the FE Monday. The RPGCL revealed the lean LNG specification as it extended the deadline for submitting expressions of interest (EoI) by interested spot LNG suppliers by more than two weeks to August 17 from previous July 30 following requests from some interested parties, he said. The RPGCL is a wholly-owned subsidiary company of state-owned Petrobangla, and is responsible for dealing with LNG issues. The delivered LNG should contain not less than 91 per cent molecular percentage of methane.

The contract period with the spot LNG suppliers would be five years or more, he said. The size range of vessels to be accepted by the receiving terminal would be from 125,000 – 220,000 cubic meter, as per the specification. The RPGCL will be the contracting party for procuring LNG on behalf of Petrobangla. The government of Bangladesh will pay for LNG procurement through Petrobangla or RPGCL. Petrobangla, as a part of LNG sourcing strategy, is in discussion with LNG producers for procuring base quantity under long-term contract and intends to procure some portion from spot market. “We will plan to procure volume from spot LNG based on various factors like price, terminal availability, and increase in re-gas capacity and downstream demand,” said the RPGCL official. LNG suppliers will be shortlisted based on the age of firms, historical LNG delivery experience both in FSRU (floating, storage, re-gasification unit) based and land-based terminal, ability to deliver lean LNG etc.