Bangladesh to raise long-term LNG import

Bangladesh is preparing to significantly ramp up its liquefied natural gas (LNG) imports from long-term suppliers next year, aiming to reduce dependence on costly and uncertain spot market purchases.

Imports under long-term sales and purchase agreements (SPAs) are set to rise by more than 53 per cent in 2026, reaching 86 cargoes compared with 56 this year, according to officials.

The state-run Petrobangla expects the increased volumes to come from newly signed SPAs with QatarEnergy, Oman's OQ Trading, and US-based Excelerate Energy, alongside its existing arrangements.

At the same time, spot market purchases are projected to fall by over 38 per cent, easing exposure to volatile prices.

The additional cargoes will come from the new suppliers that signed sales and purchase agreements (SPAs) with state-run Petrobangla in 2023.

A senior Petrobangla official told The Financial Express on Sunday that the move would strengthen supply security.

Petrobangla is likely to import around 29 LNG cargoes from the spot market in 2026 compared to 47 this year, the official said.

QatarEnergy has consistently supplied 40 cargoes annually in recent years, while Oman's OQ Trading International has provided 16 cargoes under existing SPAs. Petrobangla has sourced the balance from spot and short-term suppliers.

Officials noted that Petrobangla signed four long-term LNG contracts between June 2023 and June 2024 to meet rising demand for re-gasified LNG until 2041.

These agreements were concluded under the controversial Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 (Amended 2021), which allows deals through direct negotiations rather than competitive tenders, an Energy and Mineral Resources Division (EMRD) official said.

Under the contracts, LNG prices range between 13.20 and 13.50 per cent of the three-month average Brent crude benchmark, plus a constant of 0.40-0.50 US cents per million British thermal unit (MMBtu).

From January 2026, Petrobangla will begin lifting LNG from Excelerate Energy under an SPA signed in November 2023, covering up to 1.0 million tonnes per annum (MTPA) for 15 years at a price of about 13.35 per cent of Brent plus 0.30 US cents per MMBtu.

It will also start imports from QatarEnergy under a June 2023 deal for up to 1.8 MTPA over 15 years, priced at around 13.20 per cent of Brent.

In addition, Oman's OQ Trading-formerly Oman Trading International-will supply up to 1.5 MTPA for 10 years beginning in 2026 under a contract signed in June 2023, priced at about 13.35 per cent of Brent plus 0.50 US cents per MMBtu.

Petrobangla, however, cancelled an SPA with Summit Oil & Shipping Company Ltd (SOSCL), signed in June 2024, which had been set to deliver 1.5 MTPA for 15 years at 13.35 per cent of Brent plus 0.29 US cents per MMBtu.

Currently, Bangladesh buys LNG from Qatargas at 12.65 per cent of Brent plus 0.40 US cents per MMBtu, and from OQ Trading at 11.90 per cent plus 0.50 US cents.

Official data show that Bangladesh's LNG re-gasification capacity is close to saturation, reaching around 1,053 million cubic feet per day (mmcfd).

The country's two floating storage and regasification units (FSRUs) are running at about 95 per cent of their combined 1,100 mmcfd capacity. The FSRU operated by Excelerate Energy has a capacity of 600 mmcfd, while Summit Group's unit can process 500 mmcfd.

Full utilisation of both FSRUs would allow Bangladesh to import up to 115 cargoes annually, the official said.

In 2025, Petrobangla imported a record 108 cargoes, the highest ever in a single year, and plans to add seven more to meet demand from state-run fertiliser factories.

In August alone, the country brought in 11 cargoes, the highest monthly tally. Since early June, Bangladesh has been re-gasifying over 1,000 mmcfd of LNG after securing six additional cargoes to boost supplies to industries.

As of 27 September 2025, the country's total gas output stood at around 2,728 mmcfd, including 981 mmcfd of re-gasified LNG, according to Petrobangla data.

azizjst@yahoo.com