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US Deal to Supply 117 LNG Cargoes Over 12 Years
The government has approved the purchase of liquefied natural gas (LNG) from four companies to meet the country's urgent gas demand, including 117 LNG cargoes from a US company over 12 years under a government-to-government (G2G) agreement.
The purchase proposals were approved at a meeting of the Cabinet Committee on Government Purchase chaired by Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday (12 August).
The Energy and Mineral Resources Division said the decision was taken to ensure an uninterrupted gas supply amid the volatile geopolitical situation and the ongoing conflict involving the United States, Israel and Iran.
Under the G2G arrangement, Bangladesh will purchase 117 LNG cargoes from US-based Gunvor USA LLC between 2026 and 2038. Another six cargoes will be purchased from three other companies through the direct purchase method.
The committee approved the purchase of two LNG cargoes from the UK's Blackcube International Ltd at $15.50 per MMBtu and two cargoes from Oman's Maxwell International SPC at a price linked to the JKM index, with an additional $0.54 per MMBtu.
It also approved the purchase of two LNG cargoes from Hong Kong-based Zhenyu Shipping Company Ltd in 2026 at $14.95 per MMBtu through the direct purchase method.
117 LNG cargoes from US company
Under the G2G agreement with Gunvor USA LLC, Bangladesh will purchase a total of 117 LNG cargoes from 2026 to 2038.
The government has approved the purchase of five cargoes in 2026, six in 2027 and three in 2028, with the price linked to the JKM index plus $0.0875 per MMBtu.
Another three cargoes will be purchased in 2028. From 2029 to 2038, Bangladesh will purchase 10 cargoes annually.
For these cargoes, the price will be calculated at 121 percent of the Henry Hub (HH) index plus $5.20 per MMBtu.
The Energy and Mineral Resources Division said global market volatility and the ongoing conflict have made it increasingly important to ensure a secure fuel supply.
Against this backdrop, the government is pursuing both short- and long-term LNG procurement arrangements to meet the country's growing gas demand and strengthen energy security.