Bangladesh signs LNG deal with US firm
Staff Correspondent
Bangladesh has signed a non-binding agreement with a US firm, Argent LNG, to purchase up to 5 million metric tonnes of liquefied natural gas (LNG) annually.
Argent LNG is developing a 25 million metric tonnes per annum (MTPA) LNG facility in Louisiana.
This is the first major US LNG supply deal since President Donald Trump took office on Monday, according to a statement issued by Argent LNG.
Since coming to power, Trump has taken executive action to end the Department of Energy's pause on licenses to export the super-chilled gas to countries that do not have free trade agreements with the United States, as he tries to increase US exports of LNG.
If the Argent LNG project in Port Fourchon is completed, its cargoes could be sold to Petrobangla, according to the agreement.
"This agreement not only ensures a reliable energy supply for Bangladesh’s expanding industrial base but also strengthens our strategic partnership with the United States," said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority.
Bangladesh has been striving to address its long-term energy needs by expanding its reliance on LNG. However, the country remains highly price-sensitive. In 2022, as LNG prices surged following Russia's invasion of Ukraine, Bangladesh shifted back to using more affordable coal.
Source: With input from agencies
