A government committee has recommended approval of a proposal to procure two spot Liquefied Natural Gas (LNG) cargoes, as Bangladesh continues to grapple with mounting pressure on its energy supply amid global market volatility.

The proposal, placed by the Energy and Mineral Resources Division, seeks to import two LNG cargoes under the Public Procurement Rules 2025 through an international quotation process from the spot market, according to UNB report.

According to official sources, the cargoes are scheduled for delivery on April 24-25 (10th cargo) and April 27-28 (11th cargo).

Both cargoes are proposed to be purchased from TotalEnergies Gas and Power Limited of the United Kingdom at a quoted price of US$19.77 per MMBtu. Each cargo will cost more than Tk 833 crore each.

The government on Wednesday approved separate proposals for procuring one crore liters of refined palm oil, 30,000 metric tons of fertiliser, EPI vaccines and SPC poles to meet the growing demand for the country.

The approvals came from the 11th meeting of the Cabinet Committee on Government Purchase (CCGP) in this year held at Bangladesh Secretariat on with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.

The latest move highlights Bangladesh`s growing reliance on the spot LNG market, where prices are highly volatile, particularly during periods of global uncertainty.

Energy sector insiders say the country has been compelled to turn to spot purchases due to supply constraints and disruptions in long-term contracts, coupled with increased domestic demand for power generation and industrial use.

The global energy market has been under severe strain following the ongoing conflict involving Iran and Israel, which has disrupted supply chains and driven up prices of oil and gas.

The tensions have raised concerns over the security of key shipping routes, particularly in the Strait of Hormuz, through which a substantial portion of the world`s energy supplies pass.

As a result, LNG prices have surged in recent weeks, forcing energy-importing countries like Bangladesh to pay a premium to secure supplies.

Bangladesh has already been facing a fuel supply crunch in recent months, with authorities struggling to maintain stable electricity generation amid shortages of gas and fuel oil.

Officials have taken several measures, including increased imports of fuel oil, load management in the power sector, and prioritising gas supply to essential industries.

The high cost of LNG imports is expected to further increase the government`s subsidy burden, while also exerting pressure on foreign exchange reserves.

Economists warn that continued reliance on expensive spot LNG purchases could have broader macroeconomic consequences, including higher inflation and increased production costs for industries.

The proposed procurement of the two LNG cargoes is part of that effort, aimed at bridging short-term supply gaps during a period of heightened global uncertainty.

The meeting approved several key procurement proposals, including fertiliser, refined palm olein, vaccines and SPC poles, aimed at ensuring energy security, food supply, public health and power distribution development in the country.

Under the Ministry of Commerce, the committee approved a proposal to procure 1 crore liters of refined palm olein in five lots through the local open tender (national) method at a total cost of Tk 163.48 crore.

Shabnam Vegetable Oil Industries Limited was selected as the lowest evaluated bidder with a unit price of Tk 163.48 per litre.

The committee also approved the procurement of vaccines for the Expanded Programme on Immunization (EPI) for the fiscal year 2025-26 through direct purchase from UNICEF. The Health Services Division will procure the vaccines by sending advance payment, with the total cost estimated at Taka 604.05 crore.

Under the Industries Ministry, the committee approved a proposal to import 30,000 metric tons of bagged granular urea fertilizer from Karnaphuli Fertilizer Company Limited (KAFCO), Bangladesh, at a cost of Tk 175.35 crore. The per metric ton price has been fixed at US$476.375.

Another proposal under the Industries Ministry was approved for constructing a fertilizer buffer warehouse in Chuadanga under the project titled "Construction of 34 Buffer Warehouses for Fertilizer Preservation and Distribution Facilities (1st revised)". SS Rahman International Ltd. was selected for the construction work at a cost of Tk 43.15 crore.

The committee further approved the procurement of SPC poles under the project titled "Modernization and Capacity Enhancement of BREB`s Electrical Distribution System (Dhaka-Mymensingh Division) (1st revised)". The Power Division proposed the procurement at a cost of Tk 229.90 crore.

A joint venture comprising Dada Engineering Ltd., Contech Construction Limited, TSCO Power Limited and Pasha Poles Ltd. was selected as the supplier.