Bangladesh Seals 13-Year LNG Deal with US Firm

The Bangladeshi government has approved a long-term deal to import 117 cargos of liquefied natural gas (LNG) from an American company, Gunvor USA LLC. The agreement is part of the country's reciprocal trade agreement with the United States, which aims to reduce Bangladesh's trade deficit by increasing imports from America.

The LNG will be supplied over a period of 13 years, with the first five cargos to be delivered in 2026 at a price of JKM plus $0.0875 per MMBTU. The remaining cargos will be delivered between 2029 and 2038 at a price of 121% of Henry Hub plus $5.20 per MMBTU.

The deal was negotiated with Petrobangla, the state-owned oil and gas company of Bangladesh, and is seen as a significant step towards reducing Bangladesh's reliance on imported LNG.