Qatar to Renew LNG Supply Deal with Bangladesh

Qatar has agreed to renew the Memorandum of Understanding (MoU) related to Liquefied Natural Gas (LNG) supply, which recently expired.

Furthermore, the country is willing to work together on the technical aspects of constructing a proposed onshore LNG terminal for Bangladesh.

The commitment was made on Tuesday (April 22nd) in Doha during a courtesy meeting between Qatar's Minister of State for Energy Affairs, Saad bin Sherida Al-Kaabi, and Chief Advisor Professor Muhammad Yunus on the sidelines of the Artha Summit.

"We want to stand by Bangladesh, and we will continue to do so," said the Qatari minister.

This information was conveyed by the Deputy Press Secretary to the Chief Advisor, Abul Kalam Azad Mazumder.

He stated that in September 2017, Bangladesh and Qatar signed a government-to-government (G2G) LNG Sale Purchase Agreement (SPA), under which 1.5 to 2.5 million tons per annum (MTPA) of LNG is being imported for 15 years. Under this agreement, 40 LNG cargoes are imported annually. Subsequently, in June 2023, another SPA was signed, stipulating the supply of an additional 1.5 million tons of LNG per year starting from January 2026.

An MoU related to this SPA expired in January of this year, which Qatar has now promised to renew.

The Qatari Minister of State said, "We are ready to sign the MoU. Qatar is interested in building a long-term partnership with Bangladesh."

He also mentioned that Qatar plans to double its LNG production, which could lead to lower prices in the future.

He added that long-term agreements are the best solution for supply security.

Chief Advisor Professor Yunus told the Qatari Minister of State, "We seek your assistance to restructure our energy sector."

Energy Advisor Mohammad Fouzul Kabir Khan, who was present at the meeting, stated that Bangladesh is planning to build an onshore LNG terminal in Matarbari, Cox's Bazar, which will involve supplying LNG through pipelines and distributing re-gasified LNG (R-LNG).

He further informed that currently, the LNG terminals in the country can handle 115 cargoes per year, and Bangladesh plans to import more LNG cargoes from Qatar. During the meeting, the Qatari Minister also indicated their intention to increase the supply of urea fertilizer to Bangladesh.

Also present at the meeting were Foreign Affairs Advisor Md. Touhid Hossain, National Security Advisor Khalilur Rahman, Chairman of the Bangladesh Investment Development Authority (BIDA) Ashiq Mahmud, Sustainable Development Goals (SDG) Affairs Secretary Lamia Morshed, and Energy Secretary Mohammad Saiful Islam.