Bangladesh approves Petrobangla’s initial LNG deal

Petrobangla’s deal to buy 2.5 million tons of liquefied natural gas (LNG) from Qatar’s RasGas has been approved by Bangladesh’s Cabinet Committee on Public Purchase. 

The final agreement will be signed soon, a senior official at the energy and mineral resources division of Bangladesh’s energy ministry told Platts.

He said the price was set at around 12.5 percent of the three-month average Brent crude prices plus 0.5 percent.

The deal between the state-owned Petrobangla and RasGas was signed on July 13, however, the deal had to be approved by the law ministry as well as the cabinet committee.

With the deal being flexible, the official noted the volumes delivered to Bangladesh could increase in the future. The deal will cover one third of Bangladesh’s import capacity as its FSRU-based terminals spring into operation during 2018.

Bangladesh’s two terminals, one being developed by Excelerate Energy and the other by Summit LNG to be located at Moheshkhali Island in the Bay of Bengal are set to be commissioned by April 2018 and the Summit terminal by October 2018, respectively. Both FSRUs have a 3.75 million tons of LNG per year capacity.

LNG World News Staff