Govt to buy LNG, soybean oil, lentil to tackle crisis

The government has decided to prioritise several steps to tackle several ongoing crises by approving proposals to import LNG to ensure fuel to sustain industrial production and purchase soybean oil and lentils to provide products at affordable prices to low-income people.

In addition, the government is also regularly allowing the import of fertilisers to keep agricultural production running.

The Cabinet Committee on Government Purchase (CCGP) on Wednesday approved six separate proposals, including those for procuring 33.60 lakh MMBtu LNG from the spot market as the price has dropped in the international market, and 1.10 crore litres of soybean oil and 8,000 tonnes of lentil for the Trading Corporation of Bangladesh (TCB) ahead of the month of Ramadan.

The approvals came from the sixth CCGP meeting this year. Finance Minister AHM Mustafa Kamal chaired the meeting virtually.

Briefing reporters after the meeting, Cabinet Division Additional Secretary Sayeed Mahbub Khan said that following a proposal from the Energy and Mineral Resources Division, Petrobangla will procure 33.60 lakh MMBtu LNG from the spot market with a little over Tk 690.42 crore, where per unit or MMBtu LNG will cost $16.5.

Japanese company JERA, which is among the signatories of the Master Sale and Purchase Agreement, will supply this LNG.

The government stopped LNG import from the spot market in August last year due to the global price hike and dollar crisis, severely affecting the country’s industrial sector and decreasing the production of most industries.

Under the circumstances, the government decided to buy LNG from the spot market in the first phase on February 1 to keep the gas supply to the industrial sector normal. At that time, LNG was purchased at $19.74 per unit.

The government plans to import a total of 12 cargoes of LNG till June. The first cargo will arrive this month. The second cargo is expected to arrive in March.

Sayeed said following separate proposals from the Commerce Ministry, TCB will buy 1.10 crore litres of soybean oil from City Edible Oil Ltd with over Tk 191.96 crore, where per litre will cost Tk 174.5 — down from the previous Tk 176.88.

He said TCB will also purchase some 8,000 tonnes of lentils from a Turkish company with over Tk 73.44 crore, where per tonne will cost $858.

Besides, the Bangladesh Chemical Industries Corporation (BCIC), under the Industries Ministry, will procure some 20,000 tonnes of phosphoric acid for DAP Fertiliser Company Ltd, Chattogram with over Tk 119.50 crore.

Sun International FZE of the UAE will supply this consignment with per ton costing $559.5, down from the previous price of $688.5, he said.

BCIC will also buy some 25,000 tonnes of rock phosphate for the TSP Complex Limited, Chattogram with around Tk 88.06 crore. Agro Industrial Input, Dhaka will supply this rock phosphate where per ton will cost $329.85, down from the previous price of $334, Sayeed added.

Apart from these, he said, the CCGP meeting approved Tk 123.09 crore for construction work of a 730-metre-long bridge at Nalchity Upazila in Jhalakathi under an LGRD Ministry project.