Bangladesh Signs Landmark Deal to Buy 5M Tons of LNG Annually from the US
The Government of Bangladesh has entered into a major liquefied natural gas (LNG) supply agreement with Louisiana-based Arjent LNG in the United States. Under this agreement, Bangladesh will purchase 5 million tons (50 lakh tons) of LNG annually, according to a report by London-based international news agency Reuters.
On Friday, January 24, the company announced the deal in a statement. Arjent LNG is currently constructing infrastructure in Louisiana with an annual production capacity of 25 million tons of LNG (MTPA). The agreement has been signed as a non-binding contract. If Arjent LNG’s project in Port Fourchon, Louisiana, is completed, its cargoes could be sold to Bangladesh’s state-owned energy company, Petrobangla, as stated in the agreement.
Reuters further reported that this is the first major LNG supply deal from the United States since Donald Trump assumed office as President. Industry experts view this as a reflection of confidence in the new administration’s energy-friendly policies. Following Trump’s inauguration, the U.S. Department of Energy lifted a moratorium on licenses that permit the export of super-cooled gas to countries without free trade agreements with the U.S.
Regarding the deal, Ashiq Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), told Reuters that the agreement would ensure a reliable energy supply for Bangladesh's growing industrial base and strengthen strategic partnerships with the United States.
Background:
On Monday, January 20, Donald Trump was sworn in as President, and this deal marks the first major LNG supply agreement under his administration. Parties involved in the deal stated that it reflects the industry’s trust in the new administration’s energy-friendly approach. The U.S. has already become the world's largest LNG exporter and aims to double this capacity by 2028.
Since taking office, Trump has issued several executive orders, including lifting a moratorium by the U.S. Department of Energy that restricted the export of super-cooled gas to non-free trade agreement countries. These steps are primarily aimed at boosting U.S. LNG exports.
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