Approval Granted 13-Years LNG Import from United States (U.S.)

The government has moved to strengthen Bangladesh's energy security and meet the country's growing natural gas demand by pursuing a new long-term liquefied natural gas (LNG) import agreement. To this end, the Cabinet Committee on Economic Affairs has granted policy approval for a 13-year government-to-government (G2G) LNG supply agreement with U.S.-based company Gunvor USA LLC.

The decision was made at a meeting of the committee held at the Secretariat on Tuesday (July 28), chaired by Finance Minister Amir Khasru Mahmud Chowdhury. The government will now proceed with the necessary administrative and technical procedures to finalize the agreement.

According to sources familiar with the meeting, Bangladesh currently imports LNG under seven G2G agreements with five companies from Qatar, Oman, the United States, and Saudi Arabia. However, in light of the country's existing gas shortage and the anticipated increase in demand in the coming years, the government is taking additional steps to secure long-term LNG supplies.

Under the proposed agreement, Gunvor USA LLC will supply six LNG cargoes annually to Bangladesh from 2026 through 2039. The 13-year supply arrangement has received policy approval and will now move toward a final G2G contract.

The Energy and Mineral Resources Division will oversee the implementation of the agreement, while state-owned Petrobangla will be responsible for managing the LNG imports and executing the contract.

Officials in the energy sector say that long-term LNG supply agreements help reduce the impact of price volatility and supply disruptions in the international energy market. They also believe that such agreements are crucial for ensuring a stable gas supply for power generation, industrial production, and other key sectors of the economy.