Summit Group Loses Major FSRU and LNG Contracts

The Bangladesh Chamber of Industries (BCI) has criticized the Bangladesh Energy Regulatory Commission’s (BERC) proposal to set gas tariffs based solely on LNG import prices, arguing that it is unconstitutional, unfair, and harmful to industries.

The Advisory Committee on Government Purchases approved two LNG purchases worth Tk 1,496.37 crore from the spot market under the direct procurement method. The Energy and Mineral Resources Division will procure LNG from Total Engineering Gas and Power Ltd, Switzerland (Tk 754.42 crore at $15.73 per MMBTU) and Singapore Pte Ltd, Singapore (Tk 741.95 crore at $15.47 per MMBTU).

Petrobangla is struggling to pay gas supply bills due to a lack of funds, while the National Board of Revenue (NBR) imposes double taxes on the same gas, increasing Petrobangla's arrears. To mitigate financial losses, Petrobangla is requesting the removal of VAT and taxes on LNG imports, which could save Tk 7,775 crore.

To reduce reliance on volatile spot markets, Bangladesh plans to import 1 MTPA of LNG from Saudi Aramco under a long-term deal, following a similar agreement with US-based Argent LLC for up to 5 MTPA LNG. Aramco’s proposal is under negotiation, with pricing expected to be lower than current spot rates.

MJL Bangladesh PLC has approved the sale of its 20-year-old oil tanker, MT Omera Legacy, for $22.7 million (Tk272.4 crore), with a 3% commission deducted, yielding a net amount of Tk264.22 crore. This decision aligns with its asset management strategy and was disclosed via the Dhaka Stock Exchange.

The Bangladesh government plans to clear approximately $2 billion in arrears to international energy suppliers within two months, addressing overdue payments to companies like Chevron Bangladesh and QatarEnergy.