Qatar has agreed to renew the recently expired Memorandum of Understanding (MoU) on LNG supply to Bangladesh and to work on the technical details for a proposed land-based LNG terminal in the country.
Qatar's State Minister for Energy Affairs Saad bin Sherida Al Kaabi, gave this assurance on Tuesday during a meeting with Chief Adviser Professor Muhammad Yunus on the sidelines of the Earthna Summit in Doha.
“We want to support Bangladesh as much as possible, and we will continue doing that,” Kaabi told the chief adviser.
Qatar and Bangladesh signed a Sales and Purchase Agreement (LNG SPA) in September 2017 for the import of 1.5-2.5 MTPA (million tons per annum) of LNG for 15 years under a government-to-government (G2G) arrangement with Qatar Gas.
Under this agreement, forty cargoes are imported annually.
A second LNG SPA was signed in June 2023, which adds an additional 1.5 MTPA of LNG annually for 15 years, starting in January 2026.
The MoU related to the LNG SPA expired in January, prompting Qatari authorities to offer a renewed pledge.
“We will sign the MoU immediately,” said the Qatari state minister, emphasizing the long-term partnership between the two countries.
He added that they expected the price of LNG to decrease, as Qatar plans to double its production.
“Long-term contracts are always the best solution for supply security,” he said.
Chief Adviser Professor Yunus expressed Bangladesh's desire to explore its energy potential with Qatar's assistance. “We need your help to reorganize our energy sector,” he said.
Energy Adviser Fouzul Kabir Khan, who was present at the meeting, informed the attendees that Bangladesh plans to build a land-based LNG terminal with a pipeline, which will deliver re-gasified LNG (R-LNG) through the construction of a pipeline under an umbrella project in Matarbari, Cox’s Bazar, to upgrade the country's energy infrastructure.
He also mentioned that the country plans to increase the number of LNG cargoes from Qatar, as Bangladesh's LNG terminals currently have the capacity to handle 115 cargoes annually.
During the meeting, the Qatari state minister noted that Qatar also plans to increase its urea fertilizer supply to Bangladesh.