GLNG: Bangladesh turns to Brunei for LNG supply

Bangladesh has turned to Brunei for a supplemental supply of LNG, the country’s media has reported. A delegation of officials from Bangladesh’s Energy and Mineral Resource Division has visited Brunei’s capital of Bandar Seri Begawan to discuss shipments of up to 1.5mn tonnes during 2023.

State Minister of Power Energy and Mineral Resources Nasrul Hamid led the delegation, which also discussed the possible supply of several hundred thousand tonnes of diesel and other petroleum products. Bangladesh has previously imported products from Brunei during the 2014-16 period.

“We want to get 1 to 1.5mn tonnes of LNG annually from Brunei from early 2023,” Hamid said in a statement released to Bangladeshi media. “The contract may be for 10-15 years. Brunei has agreed to expand areas of energy co-operation.”

Brunei officials have taken the proposal under consideration, the media reported. In October, the two countries signed a memorandum of understanding (MoU) regarding the supply of LNG and other petroleum products during a visit to Dhaka by the Sultan of Brunei.

Bangladesh is facing an energy shortage, but has found difficulty in persuading contracted suppliers to increase their deliveries. And prices on the LNG spot market are too expensive for it to afford.

The country has a long-term agreement with Qatar to supply 1.8-2.5mn tonnes per year and another contract with Oman to deliver 1-1.5mn tpy. Both countries were approached by the Bangladeshi authorities with a request to boost supply, but neither were able to comply due to the strong global demand for LNG and their previous commitments.