State-owned Petrobangla, the oil, gas, and mineral corporation of Bangladesh, has entered into another agreement with OQT, Oman, to increase the import of liquefied natural gas (LNG) from the Middle Eastern country, UNB reports.

According to the new agreement, OQT, the Omani state-owned company, will supply Bangladesh with LNG ranging from 0.25 to 1.5 million metric tonnes per annum (MTPA) over a period of 10 years starting from 2026.

Prime minister's energy advisor Tawfiq-e-Elahi Chowdhury, who attended the signing ceremony at Sonargaon Hotel on Monday, emphasised the crucial role this agreement will play in ensuring energy security for Bangladesh. He stated, "It's a way forward to ensure energy supply to the country."

However, no details regarding prices or financial aspects of the deal were disclosed during the event. "It's a confidential matter between the two sides," said the Omani ambassador in Bangladesh, Abdul Ghaffar Albulushi.

The event also featured speeches by OQT's Chief Executive Said Al Maawali, Petrobangla's Chairman Janendra Nath Sarker, and Energy Secretary Dr. Khaituzzanan Majumder, with Energy Secretary Dr. Khaituzzanan Majumder presiding over the ceremony.

Under the existing Sale and Purchase Agreement (SPA) of LNG signed between Petrobangla and Oman Trading International (now known as OQ Trading Limited-OQT) on 6 May, 2018, Oman has been supplying 1.0 to 1.5 MTPA of LNG on a government-to-government (G2G) basis for a duration of 10 years.

The new agreement with OQ Trading Limited (OQT) extends the supply of LNG over 10 years on a G2G basis. The agreement stipulates the supply of 4 LNG cargoes in 2026, 16 LNG cargoes per year from 2027 to 2028, and 24 LNG cargoes per year from 2029 to 2035.

Currently, Bangladesh imports 3.5-4.0 MTPA of LNG under the two existing contracts. The Petrobangla chairman stated, "This will be in addition to the existing deal with Oman to increase the import by another 1 million MT under a 10-year agreement."

Bangladesh has been actively seeking to increase its LNG imports under long-term agreements to mitigate the impact of price fluctuations in the global energy market. As part of this effort, Bangladesh recently signed a new deal with Qatar to receive an additional 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG) for the next 15 years starting from 2026.

Under the new agreement, Qatar's state-owned Ras Laffan Liquefied Natural Gas Company Ltd., (Qatargas) will supply an additional approximately 1.5 MTPA of LNG per year from 2026 to 2040. Bangladesh will receive 12 LNG cargoes in 2026 and 24 cargoes in 2027.

Currently, Bangladesh's total natural gas production is approximately 3,000 million cubic feet per day (MMCFD), while the demand stands at 4,000 MMCFD, resulting in a shortfall of about 1,000 MMCFD. Out of the total production, 700 MMCFD is imported, while 2,300 MMCFD is produced domestically.