Qatar signs LNG supply deal with Bangladesh

QatarEnergy Trading, the LNG trading arm of QatarEnergy, has signed a long-term LNG sale and purchase agreement (SPA) with Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), QatarEnergy announced on June 1. The agreement involves the supply of approximately 1.8mn metric tons/year of LNG to Bangladesh for a period of 15 years, starting in 2026. The specific financial terms of the deal were not disclosed.

The SPA signing ceremony took place at QatarEnergy's headquarters in Doha and was attended by key figures including Saad Sherida Al-Kaabi, the CEO of QatarEnergy, and Nasrul Hamid, the state minister for power, energy, and mineral resources of Bangladesh.

“Today, we are proud to be the largest LNG supplier to Bangladesh and Petrobangla by a large margin, delivering more than 3.5mn metric tons/year from Qatar to Bangladesh,” Al-Kaabi said. 

Bangladesh has been grappling with a gas shortage that has affected power generation and industrial activities. The depreciation of the local currency against the US dollar has made it challenging for the government to pay for LNG imports. In response to high global gas prices, Dhaka was compelled to ration gas supplies last year.

Bangladesh already has existing LNG import deals with Oman Trading International and Qatargas. The South Asian nation has two operational floating LNG import terminals. 

On the other hand, Qatar is actively expanding its LNG production capacity. The North Field Expansion project, which includes the North Field South and North Field East expansion projects, is set to commence production in 2026. It will contribute more than 48mn metric tons/year to global LNG supplies and increase Qatar's LNG production capacity to 126mn metric tons/year.