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US-based Excelerate Energy has begun long-term liquefied natural gas (LNG) supply to Bangladesh under a 15-year sales and purchase agreement (SPA), marking a key shift in the country’s energy sourcing strategy.

The first cargo — carrying about 138,000 cubic metres of LNG — recently arrived at the Moheshkhali floating storage and regasification unit (FSRU), easing gas shortages affecting industries, power plants and other consumers.

A senior official of Petrobangla confirmed that the shipment reached the Moheshkhali terminal and was delivered successfully a couple of weeks ago.

Beyond Middle East suppliers

With this delivery, Bangladesh has formally begun long-term LNG imports from outside the Middle East. Until now, long-term contracts were limited to QatarEnergy and OQ Trading International.

Petrobangla and Excelerate signed the SPA on November 8, 2023. Under the agreement, Excelerate will supply between 0.85 million tonnes per annum (Mtpa) and 1.0 Mtpa over 15 years starting in 2026.

Supplies are set at 0.85 Mtpa in 2026 and 2027, increasing to 1.0 Mtpa annually from 2028 through 2040. This translates into 12 LNG cargoes per year in the first two years and 16 cargoes annually thereafter.

To secure volumes for Bangladesh, Excelerate signed a separate agreement with QatarEnergy in January 2024.

Pricing and infrastructure expansion

Under the pricing formula, LNG will be purchased at about 13.35 per cent of the three-month average Brent crude oil price, plus a fixed premium of $0.30 per million British thermal units (MMBtu), officials said.

Excelerate has also expanded the Moheshkhali Floating LNG (MLNG) terminal under a separate agreement signed in November 2023. According to Rupantarita Prakritik Gas Company Ltd, the terminal’s send-out capacity has been increased by 20 per cent to 600 million cubic feet per day (mmcfd), up from 500 mmcfd.

The US firm now owns both operational FSRUs in Bangladesh, with a combined regasification capacity of around 1,100 mmcfd. It also provides an FSRU to Summit LNG Terminal Company Ltd under a 15-year charter.

Growing LNG dependence

Bangladesh began importing LNG in August 2018 to tackle mounting natural gas shortages. Since then, the country has received about 35.39 million tonnes of LNG through 571 cargoes as of January 2026.

Current total gas supply stands at around 2,653 mmcfd, including 941 mmcfd of regasified LNG, according to Petrobangla data.

With the new long-term deal in place, Bangladesh aims to ensure more stable supply while reducing overreliance on a limited group of suppliers.