Bangladesh to get first U.S. LNG cargo, likely first spot cargo, since mid-2022
Bangladesh is set to receive its first U.S.-loaded liquefied natural gas (LNG) cargo since mid-2022, which is also believed to be its first spot LNG cargo since that time, according to ship tracking data and an analyst.
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Bangladesh to get first U.S. LNG cargo, likely first spot cargo, since mid-2022
By Reuters Staff3 MIN READ
SINGAPORE, Feb 17 (Reuters) - Bangladesh is set to receive its first U.S.-loaded liquefied natural gas (LNG) cargo since mid-2022, which is also believed to be its first spot LNG cargo since that time, according to ship tracking data and an analyst.
The purchase comes amid easing Asian spot prices that have slid nearly 40% this year. The Seapeak Magellan vessel picked up the cargo of about 155,000-156,000 cubic meters at Calcasieu Pass, Louisiana, and departed on Jan. 18, according to Refinitiv and Kpler shipping data.
Its discharge destination is Bangladesh’s Chittagong port.
Kpler’s shipping data also shows that the Seapeak Magellan is chartered by TotalEnergies.
“Bangladesh’s first spot cargo since June 2022 is likely on board the Seapeak Magellan,” said Olumide Ajayi, senior LNG analyst at Refinitiv.
The vessel, with an estimated arrival date of Feb. 21 at the Chittagong port, “matches the date of the Petrobangla tender reportedly won by TotalEnergies”, he added.
TotalEnergies did not respond to a request for comment.
Bangladesh returned to the spot LNG market in late January seeking cargoes, reversing a government decision to halt spot purchases in July last year after prices spiked following the Russia-Ukraine war.
Asia spot LNG prices LNG-AS have since shed three-quarters from its record highs amid firm inventory levels in North Asia and a mild European winter, prompting buying interest from emerging gas markets in Asia.
State-owned Rupantarita Prakritik Gas Company Ltd (RPGCL), a subsidiary of Petrobangla, has issued two buy tenders for delivery in February and March. The first tender, which sought a cargo for delivery between Feb. 21-22, was awarded to TotalEnergies at $19.74 per million British thermal units (mmBtu), two Petrobangla officials told Reuters.
The lowest offer for the second tender was made by JERA, Japan’s biggest power generator, at $16.50 mmBtu, said three sources.
An official in Bangladesh said this month it would buy 10-12 spot LNG cargoes between February and June if prices soften further, while also seeking long-term supplies from Brunei LNG.
Global market supplies however remain tight, and producers will be receiving many offers, said Refinitiv’s Ajayi.
“It’s a suppliers’ market. It’s whether Bangladesh comes with an offer to meet Brunei’s expectations,” he said. “There are other producers in the Pacific basin as well that provide easy shipping access to Bangladesh, like Papua New Guinea, Brunei and Indonesia’s Bontang LNG project, of which some of their contracts are expiring soon.”
Bangladesh has a 10-year contract with Oman Trading International and a 15-year contract with Qatar. Bangladesh has not received any shipments apart from Qatar-loaded cargoes since June 2022, according to Refinitiv data. (Reporting by Emily Chow in Singapore and Ruma Paul in Dhaka; Editing by Robert Birsel)
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