Bangladesh to sign long-term LNG deal with Excelerate Energy

Bangladesh has approved a comprehensive long-term LNG deal with Excelerate Energy, state news agency Bangladesh Sangbad Sangstha (BSS) reported on October 25.

The government has allowed the state-owned energy company Petrobangla to purchase 0.85mn tonnes/year of LNG from 2026 to 2027 and 1mn tonnes/year of LNG from 2028 to 2040 from Excelerate Energy Bangladesh under a 15-year deal. 

Additionally, the government has granted approval for the expansion of Excelerate-operated floating storage and regasification unit (FSRU) capacity. The FSRU, currently operating at 500 million ft³/day, will be expanded to 600 million ft³/day, enhancing Bangladesh's ability to import LNG. 

Amidst the backdrop of declining global gas prices, Bangladesh has undertaken efforts to secure fresh long-term agreements. It recently signed a long-term LNG deal with QatarEnergy Trading, the LNG trading arm of QatarEnergy. In June, Bangladesh signed a deal with Oman. Bangladesh already has existing LNG import deals with Oman Trading International and Qatargas. 

The country has two floating LNG terminals, each with a capacity of 500 million ft³/day, located in Maheshkhali. One of these terminals is operated by Summit, while the other is operated by Excelerate.

Summit has received approval from the Bangladesh government to establish its second and country’s third floating LNG import terminal in Cox's Bazar.