Bangladesh to import 117 LNG cargoes from US firm until 2038
Gunvor USA LLC will supply the LNG between 2026 and 2038, with the first 14 cargoes priced against the Japan-Korea Marker after PetroBangla negotiated a lower premium.
Highlights:
- 117 LNG cargoes approved from US-based Gunvor USA
- Supply period runs from 2026 to 2038
- 14 cargoes in 2026–28 priced at JKM + $0.0875/MMBtu
- 10 cargoes annually to be supplied from 2029 to 2038
- Bangladesh plans to import around $15b of US LNG over 15 years
- Committee also approved six additional LNG cargoes from Hong Kong, UK and Oman
The government has approved a proposal to import 117 cargoes of liquefied natural gas (LNG) from US-based Gunvor USA LLC under a long-term government-to-government (G2G) agreement between 2026 and 2038.
The approval was given at a meeting of the Cabinet Committee on Government Purchase today (12 August), chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
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PetroBangla will sign the agreement with the US company.
Under the approved proposal, Gunvor will supply five LNG cargoes in 2026, six in 2027 and three in 2028, totalling 14 cargoes. For these shipments, the price has been set at the Japan-Korea Marker (JKM) plus $0.0875 per MMBtu.
The company will supply another three cargoes in 2028, followed by 10 cargoes annually from 2029 through 2038. For these shipments, the approved price is 121% of the Henry Hub price plus $5.20 per MMBtu.
The purchase committee had returned the proposal on 7 August. At the time, the proposed price for the 14 cargoes to be supplied between 2026 and 2028 was JKM plus $0.875 per MMBtu.
PetroBangla subsequently negotiated with Gunvor and managed to secure a significantly lower premium, according to officials.
The long-term LNG deal is part of the energy and trade cooperation framework included in a trade agreement signed between Bangladesh and the United States during the interim government.
Under the agreement, Bangladesh plans to import around $15 billion worth of US LNG over 15 years through long-term contracts. The proposed Gunvor agreement is part of that plan.
The Cabinet committee also approved the direct procurement of two LNG cargoes from Hong Kong for delivery this year at $14.95 per MMBtu.
It also approved the import of two cargoes from the UK's Blackcube International at $15.50 per MMBtu.
Another two cargoes will be imported from Oman's Maxwell International SPC at JKM plus $0.54 per MMBtu.
