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Bangladesh seeks long-term LNG contracts

from Qatar, India’s surplus fuel

BANGLADESH BANGLADESH is doing its best to cope state-owned Petrobangla had been discussing a
with the high cost of energy by attempting to 1mn tonne per year (tpy) increase to the current
Some 70% of arrange a long-term LNG contract with Qatar, 15-year contract that it has with Qatar. The two
Bangladesh's power one of the world’s largest LNG exporters, and parties signed a 2.5mn tpy contract in 2017 and
is generated using by talking to India about purchasing its surplus deliveries began in 2018. Since then, Petrobangla
gas, making it greatly fuel stocks. has imported 8.424mn tonnes of LNG from
exposed to the global Government investment adviser Salman Qatar, as of January 2022. It is understood that
energy crisis. F. Rahman told an Investment Development Petrobangla wants to extend the agreement for
Authority conference in Dhaka last week that a longer period.
negotiations are underway with Qatar in order Another agreement between Vitol and Qatar
to secure long-term LNG supply agreements. Petroleum covers the import of another 1.25mn
The price of LNG in the Asian market has gone tpy to Bangladesh. During 2019, the country
beyond $40 per mmBtu in recent weeks, making imported some 3.89mn tonnes of LNG, which
purchases on the spot market for LNG impossi- include contracts with Oman.
ble for Bangladesh. Bangladesh is expecting a steady increase
Rahman also said the government is attempt- in demand for electricity. In order to meet its
ing to import fuel oil from India because of domestic demand for liquid fuels, the country
international sanctions against Russian oil and imports diesel and heavy fuels from 14 different
petroleum products. Russia has offered its oil at sources.
reduced prices, but Bangladesh’s only refinery, Commenting on the talks with India and fuel
Eastern Refinery Ltd, is not suited to process supplies, Foreign Secretary Masud Bin Momen
Russian crude. India, however, has been buying said India is in a better position on the fuel issue.
Russian oil at reduced prices and is reported to “We will try to go for a long-term deal with them
have extra stocks. if they have a surplus,” he said. “But it will depend
The energy crisis is the biggest challenge fac- on how much surplus they have. They have their
ing the Bangladeshi economy over the next six own supply and demand thing,” he added. But
months, Rahman said, adding that because the he said he expected the Indian government to
country generates 70% of its electricity through help Dhaka.
gas-fired power stations, it would like to secure Bangladeshi Prime Minister Sheikh Hasina
alternatives for local gas resources. will visit India on September 5-8, during which
It was reported earlier this year that time the proposal will be discussed. ™

P10 www. NEWSBASE .com Week 35 05•September•2022