Bangladesh has finalized a long-term agreement to import liquefied natural gas (LNG) from U.S. suppliers, the country’s energy ministry announced on Wednesday. The deal comes as global gas markets face persistent supply constraints and price volatility, driven by reduced Russian pipeline flows to Europe and elevated demand in Asia.
The agreement, valued at approximately $1.4 billion, will cover the delivery of 1.8 million tonnes of LNG annually over a 15-year term. Bangladesh’s state-owned energy company, Petrobangla, will oversee the imports, which are expected to begin in 2026. The supply will be sourced from U.S. liquefaction facilities, including those operated by Cheniere Energy and Venture Global LNG.
Energy officials in Dhaka stated that the deal secures a stable supply of LNG to meet rising domestic demand, particularly for power generation and industrial use. Bangladesh has been expanding its LNG import infrastructure, including the commissioning of floating storage and regasification units (FSRUs) in recent years to reduce reliance on domestic gas production.
The agreement follows a series of short-term LNG tenders by Bangladesh in 2023 and early 2024, which were disrupted by global supply shortages and high spot prices. The long-term contract is seen as a strategic move to lock in lower prices and ensure energy security amid ongoing geopolitical risks.
U.S. LNG exporters welcomed the deal, noting that it underscores the growing role of American suppliers in meeting global energy needs. Cheniere Energy confirmed its participation in the agreement, while Venture Global LNG highlighted the deal as a milestone for its Calcasieu Pass facility in Louisiana.
Bangladesh’s LNG imports have surged in recent years, with volumes rising from 0.4 million tonnes in 2020 to an estimated 4.5 million tonnes in 2024. The country’s energy transition strategy includes a gradual shift from coal to gas for power generation, further increasing its reliance on imported LNG.
The deal is expected to be formally signed in the coming weeks, pending final regulatory approvals in both countries.
