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Excelerate Energy signs 15 year LNG term supply agreement with Petrobangla of Bangladesh

Excelerate Energy, Inc. has signed a long-term sale and purchase agreement (SPA) with the Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) to supply LNG for 15 years beginning January 2026.

Under the SPA, Excelerate will deliver 0.85 million metric tons per annum (mtpa) of LNG in 2026 and 2027, and 1 mtpa from 2028 to 2040, announced company on Wednesday.

“Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG”, Excelerate President and CEO Steven Kobos said. “Natural gas is important to Bangladesh’s economy, and we look forward to partnering with Petrobangla to help the country meet its rapidly growing energy needs”.

“Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders”, Kobos added.

According to Excelerate, the long-term SPA represents the next phase of its plan to integrate its business in Bangladesh. Excelerate first opened the Bangladesh market to LNG in 2018 with the development of its integrated Moheshkhali LNG floating storage and regasification unit (FSRU) terminal. The company deployed a second FSRU terminal in the Bay of Bengal and has used its infrastructure position to win spot LNG cargo sales into Bangladesh. Today, Excelerate’s two FSRUs in Bangladesh deliver approximately 25 percent of the country’s natural gas supply, the release said.