The Advisory Council Committee on Economic Affairs (ACCEA) has approved the extension of the LNG supply contracts for seven companies.

These companies will continue to supply LNG (liquefied natural gas) from the international spot market.

Petrobangla, the state-owned company, has been importing LNG from these companies under the Master Sale and Purchase Agreement (MSPA).

As part of the proposal, the ACCEA also approved the use of LSP software for LNG imports until March, 2025.

Finance Adviser Dr. Salehuddin Ahmed presided over the meeting.

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According to meeting sources, Petrobangla has been importing LNG from 23 listed companies that have signed MSPAs and operate in the international spot market.

The LNG is imported through international tenders under Rule-85 of the ‘Public Procurement Rule (PPR)-2008’.

Out of these companies, the contract period with eight companies ended on December 17, 2024, while the contract period of six companies will end on February 2, 2025. Meanwhile, MSPA agreements with 27 new companies are in process and will take approximately 45 more days to be finalised.

In light of this, the ACCEA approved in principle the extension of contract periods and the use of LSP software with 16 of the existing 23 companies that have signed MSPAs.

This measure is aimed at meeting the urgent gas needs of the country’s power, industry, and fertilizer sectors until March 2025.

Besides, the Advisory Council Committee on Government Purchase (ACCGP) approved a proposal from Petrobangla to import one LNG cargo from the international spot market.

The South Korean firm, Posco International Corporation, will supply the LNG cargo at a cost of Tk 692.99 crore, with a price of $14.69 per MMBtu.