State-run Rupantarita Prakritik Gas Company Ltd has initiated master sales agreements (MSAs) with 17 global suppliers separately to source liquefied natural gas (LNG) from spot market.
Final deals will be signed soon following the approval from the cabinet committee on economic affairs, a senior company official said.
He said the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) has already decided, in principle, to import around one-fourth of the country's total LNG requirement from the spot market to reap the benefit of falling prices.
Spot market is a public market in which financial instruments or commodities are traded for immediate delivery.
Spot market for the LNG was developed over the past several years with the gluts of LNG output alongside the growth of emerging markets for LNG (liquefied natural gas).
Market insiders said the Platts JKM, which represents the prices of spot cargoes delivered to northeast Asia, averaged around $4.93 per MMBtu (million British thermal unit) in the second quarter of 2019, down from $8.26 per Mmbtu a year ago.