Bangladesh to sign another LNG deal with Oman

State-owned Petrobangla, the oil gas and mineral corporation of Bangladesh, is set to sign another agreement with OQT, Oman to import more liquified natural gas (LNG) from the Middle-east country.  

According to the Ministry of Power Energy and Mineral Resources, the signing ceremony between Petrobangla and OQT, the Omani state-owned company, will take place in the city on Monday.

Prime Minister’s Energy Advisor Dr. Tawfiq-e- Elahi Chowdhury and State Minister for Power Energy and Mineral Resources Nasrul Hamid are expected to be present at the function.

Currently, Bangladesh has been importing 1-1.5 million tonnes of LNG from Oman under a state-level deal.

“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 a senior official of the Ministry of Power Energy and Mineral Resources.  

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.

Currently, Bangladesh has been importing 1.82-2.5 million MTPA of LNG since 2018 under an existing deal signed in 2017.

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.