New LNG deal signed with Qatar to import 1.8 MMT per year

Today, Bangladesh and Qatar agreed on a 15-year contract for Bangladesh to purchase 1.8 million metric tons (MMT) of liquefied natural gas (LNG) annually.

Bangladesh will begin receiving an additional 1.8 MMT of LNG annually in 2026 under the terms of the new agreement.

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Bangladesh already has a 15-year agreement with Qatar that was inked on September 25, 2017, which will provide 1.8–2.5 MTPA of LNG to Bangladesh.

At QatarEnergy’s headquarters in Doha, this new LNG Sale and Purchase Agreement (SPA) was signed between Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) and QatarEnergy Trading, the company’s LNG trading division.

Abdulla Ahmad Al-Hussaini, executive vice president of Qatar Energy, and Zanendra Nath Sarker, chairman of Petrobangla, signed the agreement on behalf of their respective organizations.

The deal was signed in the presence of Saad Sherida Al-Kaabi, President and CEO of QatarEnergy, and Nasrul Hamid, State Minister for Power, Energy, and Mineral Resources of Bangladesh.

On the occasion, State Minister Nasrul Hamid said, “I believe this support of Qatar will help bolster our fastest-growing economy. The world is facing energy crisis during this volatile situation of the Russia and Ukraine war. We hope to overcome the upcoming challenges by meeting energy demands.”

He conveyed his appreciation and thanks to the Prime Minister of Bangladesh, Sheikh Hasina, and the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, for their assistance in carrying out this excellent work.

Nasrul Hamid extended his particular gratitude to Saad Sherida al- Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, for his ongoing assistance in the signing of the LNG SPA for an additional 1.8 MTPA.

He claimed that the long-term LNG agreement between Bangladesh and Qatar was concluded successfully thanks to the honest efforts of representatives from QatarEnergy, Petrobangla, and RPGCL.

“This, indeed, is another milestone in the strong bilateral relationship between the two friendly countries having a long bilateral tie based on mutual respect, shared values, common religious ground, culture, and tradition,” the state minister added.

Regarding the current scenario of Bangladesh’s energy sector, the state minister said, “As the Bangladesh economy grows and per capita income increases, the demand for energy is rising rapidly. The current electricity generation capacity stands at 25,284 MW.”

“The government has set a target to generate 40,000 MW of electricity by 2030 and 60,000 MW by 2041. Electricity coverage throughout the country has reached 100 percent. Bangladesh has emerged as one of the fastest-growing economies globally. As a relatively cleaner fuel source, LNG is a priority to meet the increasing energy demand. Importing LNG will help fulfill the national gas grid network established across the country,” he added.

In his remarks during the signing ceremony, Minister of State for Energy Affairs, President and CEO of QatarEnergy, Saad Sherida al- Kaabi said: “Today, we are proud to be the largest LNG supplier to Bangladesh and Petrobangla by a large margin, delivering more than 3.5 million tons per annum from Qatar to Bangladesh. These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers like Bangladesh and delivering the reliable energy they require for socio-economic development and prosperity.”

He thanked works of the both sides for their dedication of reaching this agreement maintaining teams, adding: “I would also like to express our gratitude to His Highness the Amir, Sheikh Tamim bin Hamad Al Thani, for his wise leadership and his continued guidance to and support of the energy sector.”

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