Part of the signing of the agreement between Qatar Energy and Excelerate to supply gas to Bangladesh (Qatar Energy)
Qatar Energy and Excelerate Energy have signed a long-term sale and purchase agreement to supply liquefied natural gas from Qatar to Bangladesh.
Under the agreement, Excelerate (based in the United States) will purchase up to 1 million tons per year of LNG to be delivered to floating LNG storage and regasification units in Bangladesh for a period of 15 years starting in January 2026.
"Excelerate" will purchase 0.85 million tons annually of liquefied natural gas in 2026 and 2027, and 1 million tons annually from 2028 to 2040.
Commenting on this occasion, the Minister of State for Energy Affairs, Managing Director and CEO of Qatar Energy, Saad bin Sherida Al-Kaabi, said, “We are happy to sign this agreement with Excelerate to supply one million tons annually of liquefied natural gas to Bangladesh. This new agreement will contribute to strengthening our relations with Excelerate.” “At the same time, it will contribute to supporting Bangladesh’s energy needs and its pursuit of further economic development.”
Daniel Bustos, executive vice president and chief commercial officer of Excelerate Energy, said in September that the company was in advanced talks to supply LNG under a long-term contract to Bangladesh.
The State of Qatar is considered the largest supplier of liquefied natural gas to Bangladesh and seeks to maintain its position as the preferred supplier for its partners in the South Asian markets.
This deal is the latest in a series of agreements concluded by the state-owned Qatar Energy Company with European and Asian partners related to the huge North Field expansion project, which is expected to raise Qatar’s production of liquefied natural gas to 126 million tons annually by 2027 from 77 million tons annually now.
Qatar sees natural gas as a transitional fuel that will be needed in the distant future.
Source: Al Jazeera + agencies