Qatar Secures 15-Year Gas Supply Deal with Bangladesh to Bolster Energy Ties

In a major stride within the energy sector, QatarEnergy and Excelerate Energy have finalized a pivotal 15-year LNG Sale and Purchase Agreement (SPA) with the goal of providing LNG to Bangladesh. Under the SPA, Excelerate will secure up to one million tons per annum (MTPA) of LNG from QatarEnergy. The deliveries, set to commence from January 2026, will be directed to floating storage and regasification units in Bangladesh. The agreement encompasses Excelerate’s procurement of 0.85 MTPA of LNG in 2026 and 2027, and one MTPA from 2028 to 2040.

Key Points

1. Deal Structure: The agreement encompasses Excelerate’s purchase of 0.85 MTPA of LNG in 2026 and 2027, escalating to one MTPA from 2028 to 2040, reinforcing Qatar’s commitment to Bangladesh’s energy needs.

2. Qatar’s Stance: His Excellency Mr. Saad Sherida Al-Kaabi, QatarEnergy’s President and CEO, expressed satisfaction, highlighting the pact’s support for Bangladesh’s energy security and economic development.

3. Previous Engagements: QatarEnergy had previously inked a similar deal with Petrobangla, Bangladesh’s state-owned gas company, indicating a consistent effort to fortify bilateral energy ties.

4. Infrastructure Development: In May 2023, QatarEnergy awarded a $10 billion Engineering, Procurement, and Construction (EPC) contract for the North Field South (NFS) project, set to enhance Qatar’s LNG production capacity from 77 MTPA to 126 MTPA.

5. Strategic Collaborations: QatarEnergy has secured partnerships with TotalEnergies, Shell, and ConocoPhillips for the NFS project, reinforcing Qatar’s pivotal role in global LNG production.