US FSRU player Excelerate Energy has signed a 15-year liquefied natural gas (LNG) supply deal with Bangladesh’s state-owned Petrobangla.
Bangladesh recently approved this long-term LNG SPA.
Under the SPA, Petrobangla has agreed to purchase 0.85 to 1 million tonnes per annum of LNG from Excelerate beginning January 2026.
Excelerate will deliver 0.85 Mtpa of LNG in 2026 and 2027 and 1 Mtpa from 2028 to 2040, it said in a statement.
Bangladesh currently imports LNG via its first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla, and via Summit Group’s FSRU-based terminal.
Both of these facilities feature Excelerate’s FSRUs.
Today, these two FSRUs in Bangladesh deliver about 25 percent of the country’s natural gas supply, according to Excelerate.
In addition to providing the FSRUs, Excelerate has also provided spot LNG cargoes to the country.
This long-term SPA represents the next phase of Excelerate’s plan to integrate its business in Bangladesh, the firm said.
“Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG,” CEO Steven Kobos, said.
“Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders,” he said.
Earlier this year, Excelerate signed a 20-year deal to buy 0.7 mtpa of LNG on a free on board (FOB) basis from Venture Global’s Plaquemines LNG facility in Plaquemines Parish, Louisiana.
The firm also ordered one FSRU in South Korea last year.