Govt seeks more LNG cargoes from Qatar, investment in land, floating terminals

Highlights:

• Two long-term LNG contracts with Qatar, one signed in 2017 (recently expired) and another in 2023 
• Qatar agrees to renew the expired 2017 contract, likely providing additional LNG cargoes to Bangladesh
• Bangladesh plans to build a land-based LNG terminal in Matarbari with Qatari investments
• To boost investor confidence, Bangladesh is clearing $37m in outstanding LNG payments to Qatar

During Chief Adviser Muhammad Yunus' visit to Qatar for the Earthna Summit, Bangladesh sought additional cargoes of liquefied natural gas (LNG) under its existing long-term agreement with the oil-rich nation.

The government also requested Qatari investment for a land-based LNG terminal in Matarbari, with a capacity of 1,000 million cubic feet per day (mmcfd), as well as a fourth floating LNG terminal, according to Energy Division officials.

Bangladesh has two long-term LNG supply agreements with Qatar's state-owned entities – one signed in 2017 and another in 2023. The 2017 contract, under which Qatar provided 40 LNG cargoes annually, recently expired. 

Meanwhile, Qatar has agreed to renew the expired 2017 Memorandum of Understanding (MoU) and work on technical details for a proposed land-based LNG terminal in Bangladesh, according to a press statement issued by the CA's Press Wing today (22 April). 

The government has sought an additional 10-12 LNG cargoes on top of the 40 already included in the contract.

Qatar Minister of State for Energy Affairs Saad Sherida Al Kaabi made the promise when he called on Chief Adviser Professor Muhammad Yunus on the sidelines of the Earthna Summit in Doha.

Al-Kaabi is also the deputy chairman and president & CEO of QatarEnergy, with which Bangladesh signed its first long-term contract in 2017.

To boost Qatari investors' confidence, Bangladesh is set to clear all outstanding LNG payments to Qatar, totalling $37 million, by today (Wednesday), according to Energy Division officials.

"We had a productive meeting with the Qatari state minister and requested investment in the energy sector, along with additional LNG cargo [10-12] supplies under existing contracts," Fouzul Kabir told TBS over the phone from Qatar.

He said, "We also plan to build a land-based LNG terminal and a fourth Floating Storage Regasification Unit [FSRU] through open tendering and invited Qatar to participate in the bidding process."

"The Qatari state minister expressed full support and assured us of investment in the energy sector. They are pleased that we are clearing all dues related to LNG imports from QatarEnergy," Fouzul Kabir added.

Yesterday, Bangladesh paid $5 million out of the total due of $37 million. The rest of the $32 million would be paid by today through the Jeddah-based International Islamic Trade Finance Corporation (ITFC), as Bangladesh has created a basket of $500 million from ITFC to meet energy import bills.

Two long-term contracts with Qatar

Bangladesh has two long-term LNG supply agreements with Qatar's state-owned entities. Under the first 15-year deal signed in 2017 with QatarEnergy LNG (formerly Qatargas), Bangladesh receives 40 LNG cargoes annually, each with a capacity of 3.2 million MMBtu, at a price of $10.114 per MMBtu.

The second long-term agreement was signed in 2023 with QatarEnergy Trading LLC. Under this deal, Bangladesh will receive 24 LNG cargoes annually for 15 years, starting from January 2026, at a rate of $10.07 per MMBtu.

Just hours before CA Yunus left for Qatar on Monday, his Press Secretary Shafiqul Alam outlined the possible engagement in the economic and energy sector, saying, "Bangladesh will focus on strengthening economic and energy cooperation with Qatar during the visit of Chief Adviser Prof Muhammad Yunus in the oil-rich Middle Eastern country Qatar."

Chief Adviser Prof Muhammad Yunus left for Doha on Monday evening to attend the Earthna Summit 2025. The chief adviser attended the summit today.