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 Source: RPGCL/MSPA
1. EOI Submission
Supplier submits Pre-Qualification Statement to RPGCL
2. Review
RPGCL evaluates financial, technical, and reliability criteria; may contact third parties to verify claims
3. Firm Supply Offer
Buyer issues request; Seller responds with binding offer within 72 hours
4. Confirmation Notice
Per-cargo contract signed under the MSPA framework
5. Delivery
LNG shipped DES to Bangladesh's FSRU; title transfers at Delivery Point
⏱️ 72-Hour Binding Window: Firm Supply Offers must be submitted within 72 hours and are binding once submitted.
💰 Financial Requirements Source: RPGCL/MSPA
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 Source: RPGCL/MSPA
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 Source: RPGCL/MSPA
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 Source: RPGCL/MSPA
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 Source: RPGCL/MSPA
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
🌪️ Force Majeure Source: RPGCL/MSPA
Broad definition includes events beyond reasonable control:
- Natural disasters (earthquakes, floods, storms)
- War, terrorism, civil unrest
- Strikes, labor disputes
- Regulatory changes
- Facility damage beyond control
- Government actions preventing performance
Termination Right: 10-day continuous Force Majeure event allows termination of affected Confirmation Notice.
📍 Title Transfer Source: RPGCL/MSPA
Title and risk pass from Seller to Buyer at one of two points:
Option 1: Delivery Point
At the flange connection at Buyer's Facilities (FSRU)
Option 2: International Waters
At a point in International Waters as specified in Confirmation Notice
⚠️ Disqualification Risks Source: RPGCL/MSPA
Pre-Qualification Stage
- Incomplete submission → automatic disqualification
- Inaccurate information (even discovered later) → disqualification
- Late submission → rejected
- EOI must arrive during normal business hours
- 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
- Trade Control Breach → Seller may terminate immediately
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 |