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  Excelerate Energy to Purchase Qatari LNG for Bangladesh

Qatar’s LNG heavyweight QatarEnergy and U.S.-based LNG importer Excelerate Energy have signed a long-term agreement for the supply of LNG from Qatar to Bangladesh.

This sale and purchase agreement (SPA) will see Excelerate buy up to 1 million tons per annum (mtpa) of LNG from QatarEnergy to be delivered to floating storage and regasification units (FSRUs) in Bangladesh for 15 years, starting in January 2026.

Specifically, Excelerate will purchase 0.85 mtpa of LNG in 2026 and 2027, and 1 mtpa from 2028 to 2040.

Excelerate stepped into the Bangladesh market in 2018 with the development of the Moheshkhali LNG FSRU terminal, and in the years since, the company deployed a second FSRU terminal to the Bay of Bengal. Today, Excelerate’s two FSRUs in Bangladesh are said to deliver approximately 25% of the country’s natural gas supply.

The deal with QatarEnergy will help the company deliver LNG volumes agreed in the contract with Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) from November 2023.

Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “We are pleased to sign this agreement with Excelerate for the supply of up to one million tons per annum of LNG to Bangladesh. This new agreement will further strengthen our relationship with Excelerate while also supporting the energy requirements of the People’s Republic of Bangladesh and its stride towards greater economic development.”

Being the largest LNG supplier to Bangladesh, last year Qatar also signed a 15-year agreement with Petrobangla to deliver about 1.8 mtpa of LNG to Bangladesh, starting in 2026.

by offshore-energy

[29 January, 2024 / world-energy.org ]   
 
 
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