Excelerate Energy signs 15-year SPA with Petrobangla to supply LNG

Excelerate Energy, a US-based US company, has signed a 15-year sales and purchase agreement (SPA) with state-owned Petrobangla to supply LNG to Bangladesh.

Under the SPA, Petrobangla has agreed to purchase 0.85 to 1.0 million tonnes per annum (“mtpa”) of LNG from Excelerate for a term of 15 years beginning January 2026.

Excelerate will deliver 0.85 MTPA of LNG in 2026 and 2027 and 1 MTPA from 2028 to 2040.

Addressing a signing ceremony at a hotel in the city on Wednesday Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury has called upon the US companies to raise their voice against the culprits burning vehicles and people to obstruct democracy.

“You American business people should come out to raise your voice against the violence”, he said.

The function was also addressed by State Minister for Power, Energy and Mineral Resources Nasrul Hamid, US Ambassador Peter D Hass, Vice President of Asia Pacific, Excelerate Energy Ramon Wangdi, Secretary of Energy and Mineral Resources Division Nurul Alam and Chairman, Petrobangla Chairman Zanendra Nath Sarker, and Habib Bhuiyan, Country Manager-Excelerate Energy.

Nasrul Hamid said hoped that the new agreement will help ensure the country’s energy security.

Focusing on US companies’ role in the energy sector, he said that now 60 per cent of the companies are American.

Peter D Hass said American companies will extend cooperation to grow the energy sector in Bangladesh.

It was said in the event that the long-term SPA represents the next phase of Excelerate’s 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.

In the years since, the Company deployed a second FSRU terminal to the Bay of Bengal and has utilized its infrastructure position to win spot LNG cargoes sales into Bangladesh.

On Wednesday, Excelerate’s two FSRUs in Bangladesh deliver approximately 25 per cent of the country’s natural gas supply.