Bangladesh has finally inked a long-term deal to import liquefied natural gas (LNG) from Qatar in order to meet the rising demand for energy in the country.
As per the new deal, Bangladesh will import 1.8 million tons of LNG from Qatar each year for 15 years, beginning in 2026.
The long-term LNG Sale and Purchase Agreement (SPA) between the Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) and QatarEnergy's LNG trading arm, QatarEnergy Trading, was signed at the QatarEnergy Headquarters in Doha Thursday.
Nasrul Hamid, State Minister for Power, Energy and Mineral Resources of Bangladesh, and Saad Sherida Al-Kaabi, Minister of State for Energy Affairs as well as the president and CEO of QatarEnergy witnessed the signing.
Abdulla Ahmad Al-Hussaini, executive vice president of QatarEnergy, and Zanendra Nath Sarker, chairman of Petrobangla, signed the deal on behalf of their respective organizations.
Bangladesh also has an ongoing agreement with Qatar that was signed in 2017. Under that agreement, Bangladesh has received 11.746 million metric tons of LNG through 191 LNG cargo shipments until May 31, 2022.
With the new SPA, QatarEnergy reaffirms its position as the LNG supplier of choice for its partners in the South Asian LNG market.
Officials said negotiations over the signing of the new agreement have been underway for several months.
During Prime Minister Sheikh Hasina's Doha visit from May 23 to 25, she had a meeting with the Amir of Qatar, Sheikh Tamim Bin Hamad Al Thani, at Amiri Diwan to discuss various bilateral issues.
‘Qatar remains top priority for LNG imports'
During the signing ceremony, State Minister Nasrul Hamid thanked Qatar and said: “As the world faces an energy crisis in the volatile situation arising from the Russia-Ukraine war, we hope to overcome the upcoming challenges in meeting our energy needs with the support of QatarEnergy. Qatar remains our top priority for LNG imports. We expect that through a working environment based on good faith and effective communication, our cooperation and support will continue to grow, not only in the LNG sector, but also other areas.”
He also thanked Amir of Qatar Sheikh Tamim bin Hamad Al Thani and the Prime Minister of Bangladesh Sheikh Hasina for their support
“This indeed is another milestone in the strong bilateral relations between the two friendly countries having long bilateral ties based on mutual respect, shared values, common religious ground, culture, and tradition,” the state minister said.
Regarding the current situation in Bangladesh's energy sector, he said: “As the Bangladesh economy grows and per capita income increases, demand for energy is rising rapidly. The current electricity generation capacity stands at 25,284 MW. The government has set a target to generate 40,000 MW of electricity by 2030 and 60,000 MW by 2041.
“Electricity coverage throughout the country has reached 100%. Bangladesh has emerged as one of the fastest- growing economies globally. As a relatively cleaner fuel source, LNG is a priority to meet the increasing energy demand. Importing LNG will help fulfil the national gas grid network established across the country,” he added.
Qatar State Minister Saad Sherida Al-Kaabi said: "Today, we are proud to be the largest LNG supplier to Bangladesh and Petrobangla by a large margin, delivering more than 3.5 million tons per annum from Qatar to Bangladesh.
“These supply arrangements reinforce our unwavering dedication to safeguarding the energy security of valued customers like Bangladesh and delivering the reliable energy they require for socio-economic development and prosperity,” he added.
Responding to a question, Al-Kabbi said: “Qatar has never ever broken an agreement. We have reached an agreement with Bangladesh and we will never break it.”
