Bangladesh is turning to the United States for a long-term liquefied natural gas supply deal as it seeks to shore up energy supplies amid disruptions in global gas markets caused by the U.S.-Israeli conflict with Iran.
The government on Wednesday approved the purchase of 117 LNG cargoes from U.S.-based Gunvor between 2026 and 2038 under a state-to-state agreement, alongside eight cargoes from other international suppliers through direct procurement.
Under the U.S. deal, Bangladesh will buy five cargoes in 2026, six in 2027 and six in 2028. Three of the 2028 cargoes, along with all cargoes in 2026 and 2027, will be priced at the Japan Korea Marker (JKM) index plus 8.75 cents per million British thermal units (mmBtu).
The remaining three cargoes in 2028 and 10 cargoes a year from 2029 to 2038 will be priced at 121% of the U.S. Henry Hub benchmark plus $5.20 per mmBtu.
The agreement comes as Bangladesh faces growing risks to LNG supplies following disruptions to Qatari exports. QatarEnergy has declared force majeure on some long-term contracts amid the conflict and disruptions affecting LNG production and shipping routes.
The government also approved the purchase of eight LNG cargoes through direct procurement. Two cargoes from Hong Kong-based Zhenyu Shipping Company Limited will be bought at a fixed price of $14.95 per mmBtu.
The remaining six cargoes will be priced at the JKM index plus $0.54 per mmBtu. They include two cargoes each from UK-based Blackcube International Limited, Oman's Maxwell International SPC and Australia-based Global Fuel Supplies Pte Ltd., sourced through Malaysia-based Plentitude Energy Sdn Bhd.
The purchases are aimed at securing both immediate and long-term gas supplies as Bangladesh seeks to diversify LNG sources and reduce exposure to disruptions in international energy markets.
(Reuters)