QatarEnergy signs 15-year LNG deal with Bangladesh

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Doha, Qatar: QatarEnergy has entered into a long-term LNG Sale and Purchase Agreement (SPA) with Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) by signing a 15-year deal to deliver nearly 1.8 million tonnes per annum (MTPA) LNG to Bangladesh.

The LNG SPA signing ceremony held at the QatarEnergy headquarters yesterday was attended by the Minister of State for Energy Affairs and President and CEO of QatarEnergy H E Saad bin Sherida Al Kaabi and the State Minister for Power, Energy and Mineral Resources of the People’s Republic of Bangladesh H E Nasrul Hamid.

During the event, H E Al Kaabi lauded the strong bilateral relations between Bangladesh and Qatar in every field, which contributes to the economic growth of the countries. He said: “The State of Qatar shares historic ties with the People’s Republic of Bangladesh in the political and economic sphere among others.”

He continued by saying that Bangladesh has significantly contributed to South Asia’s LNG demand and diversified energy sources.

Commenting on the exceptional agreement that aims to foster relations with the South Asian country in the energy sector, H E Al Kaabi said that “Today we are proud to be the largest energy supplier to Bangladesh delivering more than 3.5 million tons of LNG per annum from Qatar to Bangladesh. This supply agreement reinforces our unwavering dedication to safeguarding the energy security of valued customers like Bangladesh and delivering the reliable energy they require for socio-economic development and prosperity.”

Minister Al Kaabi mentioned that the long-term agreement will commence in January 2026 and Qatar will look to maintain its position as the top supplier of LNG in the South Asia region.

On the occasion of the agreement deal, Bangladesh Minister H E Hamid remarked that “This indeed is another milestone in this strong bilateral relationship between the two friendly countries having a long bilateral time based on mutual respect.”

As Bangladesh citizens continue to be a vital part of the expats residing in Qatar, H E Hamid said that “Sharing common religious grounds, culture, and tradition, I must also mention the support of Qatar in the manpower sector having more than 400,000 Bangladeshi workers in Qatar. I hope this support will be extended further in the future.”

The Minister outlined that the demand for energy is increasing rapidly as the economy of the country grows. He added: “The current electricity generation capacity stands at 25,284 megawatts. The government has set a target to generate 40,000 megawatts of electricity by 2030 and 60,000 megawatts by 2041.”

Hamid noted that Bangladesh has emerged as “one of the fastest-growing economies globally” and the LNG supplies will meet the increasing energy demand.

He stated that “We deeply appreciate the brotherly and friendly support from the State of Qatar. I firmly believe this gesture of friendship will strengthen our energy cooperation and enhance bilateral cooperation across various economic and security fields.”

As the two countries anticipate venturing into a new deal, the Minister stressed that with the support of Qatar, the South Asian country “hopes to overcome” upcoming challenges in the energy sector.

Hamid also highlighted that Qatar has been a foremost priority for energy and with effective communication the corporational support will further all areas including LNG.