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Bangladesh soon to sign long term LNG contract with Malaysian trading major

Bangladesh is expected to sign a long-term LNG contract with a Malaysian trading house Perintis Akal Sdn Bhd. The Cabinet Committee of Economic Affair of Bangladesh cleared the proposal on Wednesday. The state-owned Petorbangla is expected to sign a formal long-term agreement with the Malaysian company once the proposal is formally cleared by the government.

Petrobangla is expected to sign a term contract for 1mil mt/year of LNG for 15 years with the Malaysian Perintis Akal Sdn Bhd.

Bangladesh has two long term supply contracts- one each with Qatar and Oman, signed at government-to-government level. Under the Qatari contract, with Qatar’s RasLaffan Liquefied Gas Company Ltd, Bangladesh receives approximately 40 cargoes annually. So far till May, Bangladesh received 18 term cargoes under 1.8 to 2.5mil mt/year contract signed for 15 years. Under the annual delivery programme (ADP), Qatar will supply 40 cargoes to Bangladesh in 2023.

In its another term contract with OQ Trading Ltd, previously known as Oman International (OTI), till May, Bangladesh had received six cargoes. Under the government-to-government level contract between Oman and Bangladesh for 1 to 1.5mil mt/year LNG for 10 years, Bangladesh receives around 20 cargoes annually. For the current year, Oman will supply total 16 cargoes under ADP.  

Apart from two term contracts, Bangladesh imports around four spot LNG cargoes from various suppliers every month depending on its requirement. With sustained gap between the demand and supply of natural gas, Bangladesh has been importing LNG to meet bulk industrial, commercial and domestic requirement.