REJAUL KARIM BYRON and JAGARAN CHAKMA

Bangladesh will import two liquefied natural gas (LNG) cargoes from the spot market at prices lower than its recent purchases, as global fuel rates ease amid diplomatic efforts to de-escalate the US-Israel war on Iran.

The Cabinet Committee on Government Purchase yesterday approved the procurement for delivery in late April.

UK-based TotalEnergies Gas & Power Ltd offered $19.77 per MMBtu (metric million British thermal unit) for both cargoes, down from over $20 per MMBtu in deals struck earlier this month. The total cost is estimated at Tk 1,667 crore.

Officials at the Ministry of Power, Energy and Mineral Resources said the lower rate reflects a recent dip in global energy prices, driven by expectations of a negotiated end to the Middle East conflict, which has outweighed concerns over supply disruptions in the Gulf.

Oil prices have softened in recent days, creating a window for cheaper spot purchases.

According to US media reports, prices fell as a diplomatic push by the US to end the war gathered pace, eclipsing news of more troops being sent to the region and the Strait of Hormuz remaining largely shut.

Brent sank as much as 7 percent toward $97 a barrel before paring the drop, while West Texas Intermediate was near $88.

The US drafted a 15-point plan to help bring the conflict to a close, according to news reports. The proposal was delivered to Iran via Pakistan.

On March 17, the government approved two LNG cargoes from Aramco Trading Singapore at $20.96 and $20.92 per MMBtu.

Prior to that, three cargoes were secured at above $20, including one from TotalEnergies at $21.58 and two from South Korea’s Posco International at $20.76. The three shipments are expected to arrive between April 5 and April 13.

Immediately after the war began on February 28, Petrobangla, the state-owned agency responsible for managing gas, bought two emergency cargoes at significantly higher rates – $28.28 per MMBtu from US-based Gunvor and $23.08 from Vitol.