Selling to Bangladesh
Supplier entry playbook — how to sell LNG
📋 Key Principle
The ONLY buyer is Petrobangla (via RPGCL). FSRUs do NOT buy LNG.
🎯 Entry Routes
| Route | Process | Timeline | Best For |
|---|---|---|---|
| Spot Tender | Respond to RPGCL EOI | Weeks | Established suppliers |
| Long-Term SPA | Direct negotiation | Months-Years | Major suppliers |
| G2G Route | Government channels | Variable | State entities |
📝 Spot Tender Process
1. Pre-Qualification
Register with RPGCL, submit credentials
2. EOI Response
Submit price offer when EOI issued
3. Evaluation
Lowest compliant bid wins
4. MSPA Execution
Petrobangla signs contract
5. Delivery
Deliver cargo DES to FSRU
💰 Financial Requirements From RPGCL/MSPA Documents
Suppliers must meet ONE of two qualification tracks:
Track A — Large Entity
- Total Assets: ≥ US$1 Billion
- Net Worth: ≥ US$400 Million
Verified via audited balance sheet (IAS or GAAP compliant)
Track B — Standard (Must Meet ALL)
- Profitability in 2 of last 5 fiscal years
- Current Ratio ≥ 1:1 in 2 of last 5 fiscal years
- Net Worth ≥ US$100 Million in 2 of last 3 fiscal years
- Evidence of equity financing ≥ US$30 Million (hydrocarbon projects, 10 years)
- Evidence of debt financing ≥ US$70 Million (hydrocarbon projects, 10 years)
🔧 Technical & Operational Requirements From RPGCL/MSPA Documents
Delivery Volume
- ≥ 0.5 million tonnes LNG delivered in EACH of 2 of last 5 calendar years
- At least 75% must be on DES basis (not FOB)
Shipping Capability
- Must currently own or charter ≥ 2 LNG vessels
Reliability Record
- No failed LNG deliveries in past 5 years (or detailed explanation)
- Must disclose: delays >24 hours (past 3 years), claims >US$3M, arbitration proceedings
Terminal Experience
- At least one project ≥ 2 Mtpa capacity operated for ≥ 1 year
- Experience with FSRU and land-based terminals preferred
🤝 Consortium / Joint Venture Option From RPGCL/MSPA Documents
If a single supplier cannot meet all criteria, a consortium may be formed:
| Role | Requirements |
|---|---|
| Lead Firm | Submits financial qualification; primary accountability for all obligations |
| Operating Member | Demonstrates terminal operating experience (≥2 Mtpa, ≥1 year) |
| Other Members | Net worth proportionate to equity share |
| Members <5% equity | Require undertaking from Lead or Operating Member |
Documentation Required: Signed term sheet identifying Lead Firm, Operating Member, and shareholding percentages
🏦 Credit Support Requirements From RPGCL/MSPA Documents
SBLC (Standby Letter of Credit)
- Type: Irrevocable
- Issuer: Financially strong bank acceptable to Buyer
- Amount: 50% of total LNG Cargo value
- Timing: Must be in place 7 Business Days before loading
Parent Guarantee
- Type: Unconditional and irrevocable
- Guarantor: Seller's ultimate parent entity
- Coverage: All obligations including payment
📜 Key Commercial Terms From RPGCL/MSPA Documents
Contract Architecture
- MSPA: Multi-year framework (not one-off sale)
- Confirmation Notice: Per-cargo contract
- In conflict: Confirmation Notice controls on cargo-specific matters
Payment Terms
- Currency: US Dollars per MMBtu
- Invoice due: 15 days after receipt
- Late payment: 3% above SOFR (replacing LIBOR)
Quality Specifications
- Methane: ≥ 91 mol%
- Heating value: 1,025 - 1,100 Btu/SCF
- Temperature: ≤ -159.5°C
- Off-spec cargo may be rejected
Liability Caps
- Take-or-Pay (Buyer fails to take): Max 25% of Take-or-Pay Amount
- Failure to Deliver (Seller fails): Max 50% of undelivered cargo value
Demurrage Rates
- Vessels ≤155,000 m³: US$75,000/day
- Vessels >155,000 m³: US$108,000/day
Governing Law & Disputes
- Laws of England and Wales
- UN Vienna Sales Convention excluded
- Dispute tiers: Discussion (30d) → Senior officers (15d) → Expert → SIAC Singapore
- Disputes >US$5.5M may skip Expert, go to arbitration
⚠️ Disqualification Risks From RPGCL/MSPA Documents
Pre-Qualification Stage
- Incomplete submission → automatic disqualification
- Inaccurate information (even discovered later) → disqualification
- Late submission → rejected
- Bankruptcy of any consortium member → immediate disqualification
Contract Execution (Events of Default)
- Failure to pay
- Failure to deliver Credit Support
- Insolvency
- Sanctions violations
- Anti-corruption breaches
Result: Non-defaulting party may suspend, draw on credit support, terminate with 5 days' notice
📞 Key Contacts
| Entity | Role | Portal |
|---|---|---|
| RPGCL | Tender process | rpgcl.org.bd |
| Petrobangla | Contract execution | petrobangla.org.bd |
| BPPA | Tender notices | bppa.gov.bd |