Bangladesh approves long-term LNG supply deal with Excelerate

Bangladesh has reportedly approved a long-term liquefied natural gas (LNG) supply deal with US FSRU player Excelerate Energy.

Several media reports in Bangladesh said on Wednesday that the country’s Cabinet Committee on Public Purchase, led by the by the finance minister, has approved the draft LNG SPA between state-owned Petrobangla and a unit of Excelerate.

According to the reports, Excelerate would supply 0.85 mtpa of LNG in 2026-2027 and 1 mtpa from 2028-2040 under the 15-year deal.

The price per million British thermal units would be $0.30 per MMBtu plus 13.35 percent of the Brent price on the delivery date, the reports said.

Bangladesh also approved the increase in the capacity of its first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla, from 500 million standard cubic feet of gas per day to 600 MMscf/d, the reports said.

This facility and Summit Group’s FSRU-based terminal both feature Excelerate’s FSRUs.

In addition to these facilities, Excelerate is also working on another FSRU-based facility in Bangladesh, the Payra LNG project.

Excelerate signed US LNG supply deal earlier this year

CEO Steven Kobos said in August during the company’s second-quarter results call that Excelerate aims to sign a long-term deal with Bangladesh in the upcoming period after the country’s government approved in principle the signing of the SPA.

He said that he company previously reported that both the Payra deal and the first supply deal were “working their way through the bureaucratic system, and we’re pleased that it’s reached that point.”

Kobos said at the time that the company would issue a press release when it actually signs the definitive deal.

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.

“In addition to the 20-year LNG sales and purchase agreement we announced earlier this year with Venture Global, we’re also considering additional SPAs with other LNG producers,” Kobos said in August.

Exclerate currently operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located around the globe, including in Europe and in Brazil.

The firm also ordered one FSRU in South Korea last year.

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