After refusals from Qatar and Oman on the proposals for additional supply of LNG, Bangladesh is now hoping to import up to 1.5 million tonnes of Liquefied Natural Gas (LNG) from Brunei Darussalam next year.
A visiting team of the Energy and Mineral Resource Division discussed the matter with the Brunei Darussalam authorities on Thursday at the country’s capital Bandar Seri Begawan.
The six-member team headed by State Minister of Power Energy and Mineral Resources Nasrul Hamid proposed a long-term contract in this regard.
Yang Mulia Dato Seri Paduka Awang Haji Natsatejo Bin Sokiaw, deputy minister (Energy) at the Brunei prime minister’s office, sought more time to scrutinise the proposal, said a team member who attended the meeting.
Besides long-term LNG import, both parties discussed cooperation mechanisms in the supply of other petroleum products, such as imports of 2.1 lakh tonnes of diesel on deferred payment.
“We want to get 1 to 1.5 million tonnes of LNG annually from Brunei from early 2023. The contract may be for 10-15 years. Brunei has agreed to expand areas of energy cooperation and cooperation,” Nasrul Hamid said in a press release.
On 16 October 2022, during a visit of Brunei Darussalam Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah in Dhaka, a memorandum of understanding was signed between the two countries for cooperation in the supply of LNG and other petroleum products.
Amid the spot market LNG price volatility and growing gas crisis at home, Hamid earlier also proposed to Qatar to increase LNG supply volume under the existing long term contract.
Petrobangla representatives flew to Qatar in this regard, but the Middle Eastern country rebuffed the offer, saying it won’t be able to increase supply before 2025.
At present, Bangladesh has a long term agreement with Ras Laffan Liquefied Natural Gas Company Limited to supply 1.8-2.5 million metric tonnes (MTPA) of LNG annually.
Besides this, Bangladesh has another long term contract with Oman Trading International (OTI) to import 1 MTPA to 1.5MTPA.
Bangladesh approached Oman, too, for an increase in supply, but this too was thwarted.
Earlier, Bangladesh imported around 3.25 lakh tonnes of diesel oil from PB Trading Sendirian Berhad during the 2014-2016 period.
But fuel trade did not continue after 2016 when the condition of 100% self-refinery came into play.
The six-member energy division’s visiting team flew to Brunei on 23 November and are due to be back on 25 November.
Other team members are Md Mahbub Hossain, senior secretary of Energy and Mineral Resource Division; ABM Azad, Chairman at Bangladesh Petroleum Corporation; Nazmul Ahsan, chairman at Petrobangla; Zaved Choudhury, managing director at Rupantarita Prakritik Gas Company Limited and Nahida Rahman Shumona, high commissioner to Brunei Darussalam.
Source: The Business Standard