GLNG: QatarEnergy to sign 15-year LNG supply agreement with Bangladesh

State-owned petroleum company QatarEnergy will sign a long-term deal to supply LNG to Bangladesh’s Petrobangla, Nath Sarker, Petrobangla’s chairman, told Reuters on May 30. Under the terms of the deal, QatarEnergy will supply 2mn tonnes per year (tpy) for 15 years beginning in January 2026. Sarker said the price of the deal was confidential.

The agreement marks the second Asian sales deal QatarEnergy has signed for its North Field expansion project after signing a 27-year contract with China’s Sinopec to supply it with 4mn tpy. Following the agreement of the deal, the state-owned Chinese firm also bought a 5% interest in the equivalent of one North Field East LNG train.

QatarEnergy is in the midst of a push to secure sales for its expansion of North Field, the world’s largest gas field which it shares with Iran. A source with knowledge of the new contract speaking on condition of anonymity told Reuters that it is the second of many supply agreements QatarEnergy will make this year.  

Qatar’s two-phase expansion plan is expected to increase the country's liquefaction capacity to 126mn tpy by 2027. This marks a dramatic rise from its current capacity of 77mn.