State-owned Petrobangla, the oil gas and mineral corporation of Bangladesh, signed another agreement with OQT, Oman to import more liquified natural gas (LNG) from the Middle-east country.
As per the new agreement, the OQT, the Omani state-owned company, will supply LNG 0.25-1.5 million metric ton per annum (MTPA) to Bangladesh over 10 years from 2026.
Prime Minister’s Energy Advisor Dr. Tawfiq-e- Elahi chowdhury, who was present at the singing ceremony at Sonargaon Hotel on Monday, said it will play a vital role in ensuring Bangladesh energy security.
“It’s a way forward to ensure energy supply to the country”, he added.
However, no prices or financial details of the deal was disclosed in the function. “It’s a confidential matter between the two sides”, said the Omani ambassador in Bangladesh Abdul Ghaffar Albulushi.
The function was also addressed by chief executive of OQT Said Al Maawali, and Petrobangla chairman Janendra Nath Sarker while Energy Secretary Dr Khaituzzanan Majumder presided over it.
Under the existing Sale and Purchase Agreement (SPA) of LNG signed with Petrobangla and Oman Trading International (now known as OQ Trading Limited-OQT) on 06 May 2018, Oman has been supplying 1.0 to 1.5 MTPA of LNG on a G2G basis for a period of 10 years.
Under new agreement, the OQ Trading Limited (OQT) will supply more LNG over 10 years on G-to-G basis.
It will supply 4 cargoes of LNG in 2026, 16 cargoes of LNG per year from 2027 to 2028 and 24 cargo LNG per year from 2029 to 2035.
Currently 3.5-4.0 MTPA of LNG is being imported under the two existing contracts.
“This will be in addition to the existing deal with Oman to increase the import by another 1 million MT under a 10-year agreement”, said the Petrobangla chairman.
Bangladesh has been desperately looking for increasing its import of LNG under a long-term agreement to sustain the volatility due to the frequent price fluctuation in the global energy market.
As part of the move, recently Bangladesh signed a new deal with Qatar to get an additional 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG) for the next 15 years from 2026.
The Petrobangla signed the new agreement with Qatar’s state-owned Ras Laffan Liquefied Natural Gas Company Ltd., (Qatargas).
Under the new deal, Qatar will supply an additional about 1.5 MTPA of LNG per year from 2026 to 2040. Of this, Bangladesh will get 12 LNG cargoes in 2026 and 24 cargoes in 2027.
The country’s total natural gas production is about 3000 million cubic feet per day (MMCFD) against a demand of 4000 MMCFD leaving a shortfall of about 1000 MMCFD. Of the total production, 700 MMCFD is imported while 2300 MMCFD.