The government has decided to expand its pool of approved international LNG suppliers as the country is increasingly relying on the volatile spot market to overcome a worsening gas crisis and disruptions caused to contractual supplies.
The initiative is aimed at attracting more bidders and lowering procurement costs, as only a handful of the 27 currently listed suppliers regularly participate in spot LNG (liquefied natural gas) tenders.
"We have invited applications for enlisting potential suppliers to procure LNG on a spot basis," AKM Mizanur Rahman, director (finance) of state-run Petrobangla, told The Financial Express on Sunday.
The deadline for submitting applications is 15 September.
Currently, state-owned Rupantarita Prakritik Gas Company Ltd (RPGCL), a wholly owned subsidiary of Petrobangla, invites bids from only 27 listed suppliers. However, only a few usually submit bids.
Only around half a dozen listed suppliers-including Aramco Trading Singapore Pte Ltd, BP Singapore Pte Ltd, TotalEnergies Gas & Power Ltd, Gunvor Singapore Pte Ltd, Posco International Corporation and Vitol Asia Pte Ltd-regularly participate in the bidding process, a senior RPGCL official said.
Bid participation could increase and the cost of purchasing LNG from the spot market could decline if Bangladesh expands the number of listed suppliers, sources said.
The spot market is a public financial market in which financial instruments or commodities are traded for immediate delivery.
The LNG spot market has developed over the past several years amid growth in LNG production capacity and the expansion of emerging markets for the fuel.
Petrobangla has recently increased LNG imports from the volatile spot market to overcome the country's mounting gas crisis.
Bangladesh has so far purchased 47 LNG cargoes from the spot market this year, with 45 of them bought after supplies from the Middle East were restricted because of disruptions in the Strait of Hormuz.
The country imported a total of 49 LNG cargoes from the spot market in 2025, the RPGCL official said.
Sources said the government had been struggling to arrange LNG cargoes because of the notable decline in contractual supplies resulting from the Middle East war and supply disruptions in the Strait of Hormuz.
The non-delivery of several scheduled LNG cargoes awarded under the direct purchase method (DPM) also contributed to an abrupt shortage of LNG for regasification, prompting the government to purchase spot LNG cargoes within a very short period in late August to meet urgent demand.
Bangladesh's overall natural gas supply now hovers around 2,336 million cubic feet per day (mmcfd), with regasified LNG accounting for around 711 mmcfd.
Petrobangla began importing LNG from long-term suppliers in September 2018.
It started importing LNG from the spot market in September 2020, two years after beginning imports under long-term contracts.
Bangladesh previously selected 27 global suppliers to source LNG from the spot market after inviting expressions of interest (EOIs) from interested firms.
RPGCL has master sales agreements (MSAs) with these suppliers to source LNG from the spot market.
Bangladesh has been importing spot LNG with a gross heating value ranging from 1,025 to 1,100 British thermal units (Btu) per standard cubic foot (scf).
The imported spot LNG is blended with locally produced natural gas, which is sulphur-free and sweet, before being supplied to end-users.
Spot suppliers deliver the fuel on a delivered ex-ship (DES) basis, with vessel sizes ranging from around 125,000 cubic metres to 220,000 cubic metres.
