Bangladesh to clear $37m LNG import dues to Qatar Energy LNG by Wednesday
Petrobangla said it will pay $5 million to Qatar Energy LNG tomorrow and rest of the $32 million would be paid by day after tomorrow
Bangladesh will clear dues worth $37 million by Wednesday (23 April) in Liquified Natural Gas (LNG) import bills owed to the Qatar state owned energy giant Qatar Energy LNG.
Petrobangla said it will pay $5 million to Qatar Energy LNG tomorrow and rest of the $32 million would be paid by day after tomorrow.
Its Director AKM Mizanur Rahman said, "We have created a window of paying all dues worth $37 million to Qatar Energy LNG by 23 April."
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Bangladesh has made a significant progress in meeting import bills of the Liquified Natural Gas from two long term suppliers — Qatar Energy LNG and OQ Trading Ltd since the interim government took over on 5 August, 2024, as the import bills fell way short of $100 million.
Over the last eight and half months, due bills of LNG import stands at $67.62 million as of 21 April, which was $317.48 million on 5 August, 2024.
Of the $67.62 million due, the companies — Qatar Energy LNG, formerly known as Qatargas, and OQ Trading Ltd, previously known as Oman Trading International Ltd — owe $37 million and $30.62 million, respectively.
AKM Mizanur Rahman also said, "Our payment frequncy improved significatly over the past eight months. We are committed to clear all LNG import bills within April."
He also said, "Finance ministry's consistent release of dollars for clearing due bills made this easy as overall long term LNG dues fell from $317.48 millions to $67.62 millions."
The latest Petrobangla data shows the interim governemnt so far paid $1.53 billion for long term LNG import against the actual import cost of $1.59 billion.
The middle eastern country's energy giant Qatar Energy LNG started exporting LNG to Bangladesh in 2018.
Under a 15-year-long contract, Qatar Energy LNG will export minimum 1.8 to 2.5 mtpa LNG at a cost of $10.114 per mmbtu with 40 cargoes each capacity of 32 lakh MMbtu.
Bangladesh solidifies it's energy cooperation with Qatar
In the face of severe gas crisis which was almost crippling businesses and industries, Bangladesh began LNG import from Qatar in 2018, making history.
When the Russia-Ukraine was broke out in 2022, gas prices hit the roof making countries like Bangladesh vulnerable to high prices of LNG.
Since then, Bangladesh was trying to strike more long term deals but failed as leading LNG suppliers declined following the record high price of LNG in the spot market which reached $52 per MMbtu.
In 2023, Bangladesh signed another 15-year-long LNG supply deal with another Qatar state owned company Qatar Energy Trading LLC.
Under the deal, Qatar Energy Trading LLC, would supply 1.5 million tonnes per year (mtpa) of LNG starting in January 2026, which is equivalent to about 200 mmcfd for 15 years, with 24 cargoes at a rate of $10.07 per mmbtu (1 mtpa equals 133 mmcfd of gas).
2 existing deals
There are two existing long-term LNG contractors – Qatar Energy LNG, formerly known as Qatargas, and OQ Trading Ltd, previously known as Oman Trading International Ltd, which began LNG supply in 2018 and 2019, respectively.
Qatar Energy LNG is supplying 1.8 to 2.5 mtpa at a cost of $10.114 per mmbtu for 15 years, while OQT is supplying 1 to 1.5 mtpa for 10 years at a price of $9.444 per mmbtu.
Details of four new long-term deals
In response to depleting local gas reserves and growing demands from local entrepreneurs for sufficient gas supply, Petrobangla signed four new long-term deals with Qatar Energy Trading LLC, OQ Trading Ltd, Excelerate Gas Marketing Limited Partnership, and Summit Oil and Shipping Co Ltd.
As per the deals, starting from January 2026, 88 new LNG cargoes will supply 1,000 mmcfd of gas each year at an average price of $10.396 per mmbtu, based on a fixed price of $76 per barrel of Brent crude, with a premium ranging from $0.03 to $0.05.
Of the four companies, Qatar Energy Trading LLC will supply 1.5 million tonnes per year (mtpa) of LNG starting in January 2026, which is equivalent to about 200 mmcfd for 15 years, with 24 cargoes at a rate of $10.07 per mmbtu (1 mtpa equals 133 mmcfd of gas).
OQT, an Omani company, will supply a minimum of 0.25 mtpa to a maximum of 1.5 mtpa annually, with a maximum of 24 cargoes for 10 years at a rate of $10.646. Petrobangla stated that the number of cargoes will drop to 16 if OQT is unable to meet the maximum supply limit.
US-based Excelerate Gas is scheduled to supply a minimum of 0.85 mtpa to a maximum of 1 mtpa for 15 years, at a cost of $10.446 per mmbtu.
Homegrown Summit Oil and Shipping has signed a deal to supply 1.5 mtpa for 15 years, with 24 cargoes annually at a cost of $10.428 per mmbtu but supply remain uncertain as Petrobangla cancelled the Summit's second FSRU construction which would suppoised to be the third FRSU terminal.
