QatarEnergy, Excelerate secure long-term LNG deal for Bangladesh
QatarEnergy and Excelerate Energy have signed a long-term LNG sale and purchase agreement (SPA) for the supply of LNG from Qatar to Bangladesh, the Qatari company said on January 29.
As per the terms of the agreement, Excelerate is set to purchase up to 1mn tonnes/year of LNG from QatarEnergy. The LNG will be delivered to floating storage and regasification units (FSRUs) in Bangladesh. The 15-year agreement is scheduled to commence in January 2026.
In the initial years of the agreement, Excelerate will purchase 0.85mn tonnes/year of LNG in both 2026 and 2027. The volume is set to increase to 1mn tonnes/year from 2028, extending through the year 2040.
Bangladesh's government had previously granted approval in October last year for a comprehensive long-term LNG deal with Excelerate. Additionally, further approvals were provided for the expansion of Excelerate-operated FSRU capacity. The existing FSRU, currently operating at 500mn ft³/day, is slated for expansion to 600mn ft³/day.
The country has two floating LNG terminals, each with a capacity of 500mn ft3/day, located in Maheshkhali. One of these terminals is operated by Summit, while the other is operated by Excelerate.