Bangladesh Secures Long-Term LNG Agreement with Qatar, Importing 1.8 MMT Annually
Bangladesh and Qatar have inked a momentous 15-year accord, solidifying their partnership in the import of liquefied natural gas (LNG). Under the newly signed deal, Bangladesh will receive a yearly additional supply of 1.8 million metric tonnes (MMT) of LNG, set to commence in 2026.
This agreement builds upon an existing 15-year pact between Bangladesh and Qatar, initiated on September 25, 2017. The original deal provided for a supply of 1.8-2.5 million tonnes per annum (MTPA) of LNG.
The Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) and QatarEnergy Trading, the LNG trading arm of QatarEnergy, formalized the new LNG Sale and Purchase Agreement at the QatarEnergy headquarters in Doha. The signing was executed by Abdulla Ahmad Al-Hussaini, Executive Vice President of QatarEnergy, and Zanendra Nath Sarker, Chairman of Petrobangla, representing their respective parties.
The agreement signing ceremony was attended by Nasrul Hamid, State Minister for Power, Energy, and Mineral Resources of Bangladesh, and Saad Sherida Al-Kaabi, Minister of State for Energy Affairs and President and CEO of QatarEnergy, who also serves as the witness.
Expressing his gratitude, Minister Nasrul Hamid remarked, “I believe this support from Qatar will significantly strengthen our rapidly growing economy, especially amid the volatile situation caused by the Russia-Ukraine conflict. We hope to overcome forthcoming energy challenges by meeting our increasing demands.”
Hamid extended his appreciation to the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, and the Prime Minister of Bangladesh, Sheikh Hasina, for their unwavering support in accomplishing this significant achievement. He also conveyed special thanks to Saad Sherida Al-Kaabi for his continuous backing in finalizing the LNG Sale and Purchase Agreement for an additional 1.8 MTPA.
Highlighting the strong bilateral ties between Bangladesh and Qatar, Hamid stated, “This milestone represents our shared values, culture, and tradition, and further strengthens the mutual respect between our friendly nations.”
Speaking about Bangladesh’s energy sector, Hamid emphasized, “As our economy grows and per capita income increases, our energy demand is rising rapidly. With a target to generate 40,000 MW of electricity by 2030 and 60,000 MW by 2041, LNG is a priority for meeting our increasing energy needs. Importing LNG will aid in the expansion of our national gas grid network throughout the country, while ensuring a relatively cleaner fuel source.”
During the signing ceremony, Saad Sherida Al-Kaabi, President and CEO of QatarEnergy, expressed his pride in being the largest LNG supplier to Bangladesh and Petrobangla. He emphasized Qatar’s commitment to safeguarding the energy security of valued customers like Bangladesh and delivering reliable energy for socio-economic development and prosperity.
Al-Kaabi commended the dedication of both teams in reaching this agreement and conveyed his appreciation to Sheikh Tamim bin Hamad Al Thani, the Amir of Qatar, for his wise leadership and unwavering support of the energy sector. He assured that Qatar has never broken an agreement and will remain steadfast in fulfilling its commitments to Bangladesh.
This new LNG Sale and Purchase Agreement solidifies Qatar’s position as the preferred LNG supplier in the South Asian market. Currently, Qatar delivers over 3.5 million tons per annum of LNG to Bangladesh.
Since the commencement of deliveries on September 9, 2018, Petrobangla has successfully received 11.746 million tonnes of LNG through 191 LNG cargoes, as of
May 31, 2022.