DHAKA: Bangladesh will import four spot liquefied natural gas (LNG) cargoes for delivery in June to meet increased power demand over the peak summer season, the chairman of Petrobangla said.

“We purchased eight spot cargoes and we’re in the process of purchasing four cargoes in June,” said Zanendra Nath Sarker, the chairman of the Petrobangla, on Monday.

Petrobangla, in charge of LNG imports in Bangladesh, will also get five to six cargoes in June under existing long-term supply deals, another official said.

Petrobangla has been tapping the market for spot LNG imports since February, buying an average of two cargoes per month, reversing a government decision last year to halt spot purchases after prices spiked following the Russia-Ukraine war.

But Asia LNG prices have eased this year on high stockpiles and muted North Asia demand, and were down 83% from record highs at $12 per million British thermal units on Friday.

The slide in prices enabled Bangladesh to buy three spot cargoes in May on rising demand for the summer.

“Prices are softening and that’s good. We are making all efforts to ensure energy supplies to keep the economy running,” Sarker said.

“We’re also close to finalising other long-term deals with Oman and discussion is ongoing with Qatar,” he said without giving details as the deals were still being negotiated.

Global LNG: Asian spot prices slip as muted North Asia demand weighs

Bangladesh relies on imported LNG for nearly three-quarters of its power generation, amid dwindling local gas reserves and a lack of sufficient coal-fired capacity.

But the South Asian nation was forced to slash LNG imports and ration gas supplies last year, driving down power output despite a rise in demand, as global gas prices rose amid Russia’s war in Ukraine.

This led to frequent power cuts in many areas of the country despite government efforts to ration gas supplies, and resulted in a fuel shortage that forced millions of citizens into hours of darkness every week during the second half of last year.

Bangladesh’s LNG imports in 2022 fell 13% from the previous year to 4.4 million tonnes, according to data firm Kpler.

The country has imported 1.45 million tonnes of LNG so far this year.