Bangladesh has signed a memorandum of understanding with Brunei regarding supplies of liquefied natural gas (LNG) and other petroleum products.
The memorandum was signed during a visit of Brunei’s Sultan Hassanal Bolkiah to Bangladesh on October 15-16.
During the visit, he met with Prime Minister of Bangladesh, Sheikh Hasina, and signed the memorandum on LNG supplies, according to a statement by Brunei’s Ministry of Foreign Affairs.
“In view of Bangladesh’s growing demand for energy and Brunei Darussalam’s standing as a stable and key regional exporter of energy, both leaders agreed to explore mechanisms for long-term collaboration in the energy sector, particularly in the supply of LNG and other petroleum products to Bangladesh,” the statement said.
The statement did not reveal any further information regarding the LNG supplies.
Brunei has the 6.7 mtpa Brunei LNG export plant in Lumut, one of the world’s oldest LNG export facilities. Shell and Mitsubishi have each a 25 percent share in the facility, while the Brunei government holds 50 percent.
This facility mostly ships LNG to Japan.
On the other hand, Bangladesh mostly receives LNG under long-term contracts from Qatar but also from the spot market.
However, spot LNG prices surged this year and Bangladesh halted purchases of LNG to supply its power plants in July this year, according to reports.
Bangladesh currently imports LNG via Bangladesh’s 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 Energy’s FSRUs.