Dhaka, Bangladesh (CU)_ Qatar Petroleum and global trader Vitol has signed a long-term Sale and Purchase Agreement (SPA) to supply 1.25 million tons per annum (MTPA) of liquefied natural gas (LNG) to Bangladesh. After signing the contract with Vitol, Qatar Petroleum stated that supplies to the developing LNG market will start later this year. Due to the depleting domestic gas supplies, Bangladesh with a population of 163 million is projected to become a major LNG importer in Asia along with Pakistan and India. Bangladesh began importing LNG in 2018, and since then it has become one of the rapidly expanding LNG markets.
H E Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, welcomed the agreement and said, “We are pleased to sign this SPA with Vitol, and we look forward to commencing deliveries under the SPA to further contribute to meeting Bangladesh’s energy requirements.”
A study by Copenhagen-based research firm Ramboll stated that due to the depleting domestic gas reserves and to meet the rising demands from various sectors, including factories, power plants and fertilizer plants, Bangladesh will have to import about 30 million t/y of LNG by 2041. The report says that by 2038, Bangladesh’s current gas reservoirs of around 12 trillion cubic feet will be depleted if no new gas reserves are discovered. There are two floating storage and regasification units (FSRUs) in Bangladesh with a total regasification capacity of 28 million cubic meters per day, equivalent to approximately 7.5 million t/y.
In 2019, using two long-term contracts with Oman Trading International and Qatargas, Bangladesh imported 3.89 million tons of LNG. Qatar Petroleum, the world’s leading LNG supplier, signed an agreement earlier this month for the first phase of its expansion of North Field LNG project, which focus to improve the country’s LNG production by 40 percent per year by 2026. This extension aiming to bring the LNG production capacity of Qatar from 77 million t/y to 110 million t/y is the largest single LNG project ever approved.
Minister Al-Kaabi said, “This SPA also highlights our strong ability to meet the requirements of our partners and customers. We are proud to continue to be the supplier of choice for our customers and partners around the globe.”
