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“In response to recent media reports on the declaration of force majeure on liquefied natural gas (LNG) shipments, OQ Group clarified that the matter relates solely to a specific contract managed by OQ Trading, concerning the supply of gas from a country affected by the current situation to Petrobangla company in Bangladesh,” the company said.
“We urge all parties to verify information and rely on official sources,” OQ said.
The company did not provide further details.
Local media reports said on Monday, citing Petrobangla officials, that the company received force majeure notices from OQ Trading on March 5, followed by US FSRU player Excelerate Energy the next day.
Several international media reports also reported on the OQ force majeure on Wednesday.
In June 2023, OQ signed a deal to supply 0.25-1.5 million mt per year of LNG to Bangladesh over 10 years, starting in 2026.
Under the deal, OQT agreed to deliver four cargoes of LNG in 2026, 16 cargoes per year from 2027 to 2028, and 24 cargoes per year from 2029 to 2035.
OQ did not say at the time from where these supplies would be sourced.
This is the second LNG supply deal, as the two firms had already signed a 10-year deal in 2018.
Under that SPA, which began in 2019, OQT supplies about 1 million mt per year to Bangladesh.
Bangladesh buying expensive spot LNG cargoes
LNG prices and ship charter rates skyrocketed last week after QatarEnergy stopped producing LNG at its giant Ras Laffan complex last Monday.
QatarEnergy declared force majeure to its affected LNG buyers two days after it stopped production.
Qatar is the main LNG supplier to Bangladesh via long-term LNG deals.
Bangladesh’s Rupantarita Prakritik Gas (RPGCL), a unit of state-owned Petrobangla, has issued two tenders for a total of five spot LNG cargoes after QatarEnergy declared force majeure to its LNG buyers.
According to local media reports, Gunvor will supply one LNG cargo to Petrobangla on March 15-16 and Vitol will supply one LNG cargo on March 18-19.
The Gunvor cargo will cost $28.28 per million British thermal units (mmBtu), while the Vitol cargo is priced at $23.08 per mmBtu, nearly 2.8 and 2.3 times more than the approximately $10 per mmBtu recorded in the previous tender in January, the reports said.
Moreover, TotalEnergies Gas and Power will reportedly supply one LNG cargo priced at $21.58 per mmBtu for delivery on April 5-6, while POSCO International will supply two cargoes, priced at $20.76 per mmBtu each, on April 9-10 and April 12-13.
Bangladesh currently imports LNG via two FSRU-based facilities, both of which feature Excelerate Energy’s FSRUs.
The 138,000-cbm FSRU Excellence serves Bangladesh’s first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla.
Excelerate’s 138,000-cbm FSRU Summit LNG serves as the second LNG import facility operated by Summit.
