Qatar will sign a 15-year agreement with Bangladesh to export liquefied natural gas (LNG) starting from 2018.
BE2C2 Report — Indonesia’s Pertamina could start exporting LNG to the emerging Bangladesh market next year.
Tthe energy ministers of the two countries inked a memorandum of understanding (MOU) over LNG trades September 15 in Jakarta, a spokesman for Bangladesh’s ministry of power, energy and mineral resources told Natural Gas World (NGW).
This would be Bangladesh’s fourth LNG supply agreement, and second in this month.
The agreement will provide foundation for cooperation between Indonesian energy company PT Pertamina and its Bangladeshi counterpart Petrobangla and other related companies for LNG supply from Indonesia to Bangladesh.
Under the agreement, Pertamina has an opportunity to build LNG receiving terminal in Bangladesh including Floating Storage and Regasification Unit (FSRU), mooring and infrastructure of off-loading, sub-sea and onshore gas pipe to natural gas grid.
Earlier, Oil and Director General Ego Syahrial said Indonesia, there are still cargoes of LNG in stocks and the stock is growing, report Antara News.
Meanwhile, Qatar will sign a 15-year agreement with Bangladesh to export liquefied natural gas (LNG) starting from 2018.
According to the agreement, which will be signed on September 25, Qatar’s RasGas will provide to Bangladesh an annual of 1.8 million tons of LNG for the first five years and 2.5 million tons a year for the remaining 10 years.
The agreement is considered as the first LNG import deal of Bangladesh, and the deal underscores the rise of South Asia as a new market for fuel, according to Qatari media.
South Asia is emerging as a market of potential for LNG, with Pakistan and Bangladesh set to join India as major consumers.
Bangladesh is planning to invest heavily in fuel imports to complement its growing economy. Its annual growth has averaged more than 6% over the past ten years and has run above 7% over the past two.
According to Bloomberg New Energy Finance’s global gas team, LNG trade in 2017 is forecasted to grow fastest since 2011 on low prices.
Imports of LNG will set a new record this year on the back of a robust 8.8% growth. This surge is driven by uncertainty of nuclear power generation in Northeast Asia, energy market reforms and concerns on air pollution in China, and higher capacity in major exporting regions.
Ashish Sethia, global head of LNG analysis said: “Asia will continue to be the center of gravity for the world’s LNG demand, importing over 70% of the fuel until 2030. However, from 2025, China, India & ASEAN (Southeast Asia) together will import more LNG than Japan, Korea and Taiwan combined.”
The report highlights that LNG will continue to reach new markets as prices remain low, while floating storage and regasification technology makes it easier for new countries to set-up low cost import infrastructure.