Oman Trading International set to deliver first LNG shipment to Petrobangla

Jomar Mendoza –
Oman Trading International Ltd (OTI), the trading arm of wholly state-owned Oman Oil Company, is set to deliver first LNG to Bangladesh this week, according to a report by S&P Global Platts, a leading provider of energy and commodities information.
The shipment comes three months ahead of the scheduled start of its 10-year sales and purchase agreement (SPA) signed by OTI with Petrobangla, a government-owned national oil company of Bangladesh.
Under the SPA, signed on May 13, 2018, OTI committed to supply a base volume of 1 million metric tonnes per year following the completion of the first two LNG import terminals, currently being constructed in Bangladesh. OTI will deliver LNG cargoes to Bangladesh from its portfolio of supply. The contractual deliveries were originally due to commence on May 2019.
The Cape Ann LNG carrier, loaded with 136,000 cubic metres of Nigerian LNG, was expected to reach Bangaldesh’s floating LNG terminal at Moheshkhali Island, said S&P Global Platts.
Petrobangla’s SPA with Oman Trading International was process as 11.9 per cent of the three-month average Brent crude oil prices plus 40 cents/MMBtu. Under the contract, both parties may agree to increase LNG imports to 1.5 million metric tonnes per year, or lower them to 900,000 metric tonnes per year.