Six LNG Cargoes Recommended from BP Singapore and Qatar Energy, Priced Below JKM Benchmark

The cabinet committee on government purchase has recommended approval of a proposal to buy five cargoes of liquefied natural gas (LNG) from BP Singapore Pte Ltd and one cargo from Qatar Energy Trading LLC.

The price of both sets of cargoes will be set in line with the international benchmark Japan-Korea Marker (JKM). The two proposals from the Energy and Mineral Resources Division were presented on Saturday at the committee's 51st meeting of the current year.

LNG from BP Singapore will be bought through direct procurement under Section 68 of the Public Procurement Act 2006 and Rule 99(2) of the Public Procurement Rules 2025.

Beyond the five cargoes, the arrangement keeps an option to buy additional cargoes if needed, by mutual agreement. The price has been set at 0.17 dollars below JKM per MMBtu.

LNG from Qatar Energy Trading will be bought on a government-to-government (G2G) basis under the existing long-term agreement. At a different price from the existing contract price, one additional cargo will arrive on 20 December this year. In this case the price has been set at 0.10 dollars below JKM per MMBtu.

The total cost of the two proposals was not disclosed at the briefing.

On the same day, a proposal to buy LNG from Japan's JERA Global Markets Pte Ltd (JERAGM) was presented at the 35th meeting of the cabinet committee on economic affairs.

That proposal sought policy approval to buy LNG through direct procurement. It also sought approval to sign an agreement based on the draft short-term sale and purchase agreement (SPA) and term sheet finalised between Petrobangla and JERAGM.

However, it was decided that the proposal would be presented again at a later meeting in connection with vetting by the Legislative and Parliamentary Affairs Division.

The country has long depended on imported LNG to meet gas demand. This decision to bring cargoes from both spot and long-term sources is part of maintaining that supply continuity. Although prices were set below JKM, the total cost was not published, so the actual financial burden is not yet clear.

Once final approval and contracting for the purchase proposals are completed, the cargoes are expected to arrive on schedule. If the JERAGM proposal returns to the meeting after vetting, it could also open a path to buying LNG from a Japanese source.