Shell, BP, Aramco and Glencore are among nearly two dozen firms Bangladesh has approved as suppliers of spot liquefied natural gas (LNG) as it seeks to boost competition and cut costs, the country's top energy official told Reuters.
Bangladesh's spot market was previously dominated by Vitol, Gunvor and Excelerate Energy, said Muhammad Fouzul Kabir Khan, the country's de facto energy and power minister.
But after the ousting of former prime minister Sheikh Hasina in August, the interim government is moving to an open instead of private tender.
The country of 171 million people, which made its first LNG import in 2018, bought 5.2 million metric tons in 2023, up 19% from the previous year, and analysts expect its demand to keep rising as population increases and domestic gas output falls.
Bangladesh spends about 60 billion taka ($504 million) a year on LNG imports, mainly to run power plants, with more than half coming from government contracts with Qatar and Oman and the rest through the spot market.
About half of Bangladesh's power-generation capacity is gas based, but many plants are running short of supply.
"All the major players, the giants - Aramco, Shell, BP - have applied to supply. This is the advantage of opening up," Khan said late on Tuesday. "We are trying to open up to have more competition and save more."
Khan said potential savings would depend on new orders placed by state-run Rupantarita Prakritik Gas Co Ltd (RPGCL). He did not say when that could happen.
Saudi Aramco's trading arm Aramco Trading Co (ATC), BP Singapore, Shell International Trading Middle East and Glencore Singapore are among the 22 new firms on Bangladesh's list of 33 potential suppliers seen by Reuters.
Vitol Asia, Gunvor Singapore and Excelerate Energy are among the existing suppliers remaining on the list.
Glencore, declined to comment. Saudi Aramco, BP, Shell, Vitol, Gunvor and Excelerate Energy did not immediately respond to requests for comment.
In November, RPGCL issued an invitation for companies to supply LNG on a spot basis. The new list of companies would replace the previous roster of 23 suppliers, an official at RPGCL parent Petrobangla said at the time.
Bangladesh imports about 100 LNG cargoes annually, with more than 50 through direct contracts with Qatar and Oman and the rest as spot purchases from private suppliers, Khan said.
($1 = 119.0000 taka)
