Bangladesh, Oman ink long-term LNG supply deal

Bangladesh’s state-owned company Petrobangla has signed a long-term deal to buy liquefied natural gas (LNG) from Oman’s state-owned firm OQ Trading.

Under the SPA signed on June 19, OQT, previously known as Oman Trading International, will supply 0.25-1.5 million mt per year of LNG to Bangladesh over 10 years, starting in 2026, according to a statement by Bangladesh’s ministry of power and energy.

OQT will deliver four cargoes of LNG in 2026, 16 cargoes per year from 2027 to 2028, and 24 cargoes per year from 2029 to 2035, the statement said.

This is the second LNG supply deal as the two firms have already signed a 10-year deal back in 2018.

Under that SPA which started in 2019, OQT is supplying about 1 million mt per year to Bangladesh.

OQT works with Omani state-owned producer Oman LNG, the operator of three LNG trains in Qalhat with a nameplate capacity of 10.4 mtpa.

Besides these deals, Petrobangla has a 15-year deal with QatarEnergy’s unit Qatargas for 2.5 million mt of LNG and this deal started in 2018.

The firm recently signed another deal with QatarEnergy’s LNG trading arm for about 1.8 million mt of LNG per year, starting in 2026.

Bangladesh currently imports LNG via its first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla, and via Summit’s FSRU-based LNG import terminal located offshore Moheshkhali Island in the Bay of Bengal with a daily regasification capacity of 500 million cubic feet.

Both of these facilities feature Excelerate Energy’s FSRUs, which is also working on the Payra project.

Bangladesh also recently approved Summit’s second FSRU-based terminal which will be located about 5 kilometers off Moheshkhali island.

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