Bangladesh Finalizes LNG Deal with Oman Trading International

By Ruma Paul and Oleg Vukmanovic
Monday, April 23, 2018

Bangladesh has finalized a 10-year deal to import 1 million tonnes of liquefied natural gas (LNG) annually from Oman Trading International, two energy officials with direct knowledge of the matter told Reuters.

The deal with Oman Trading is Bangladesh's second LNG import agreement after Qatari producer RasGas, which has since merged with sister company Qatargas, to cover the country's domestic natural gas shortfall.

The LNG will be priced at 11.9 percent of the three-month average price of Brent plus a $0.40 per million British thermal unit (mmBtu) constant, one of the officials said.

The deal with Oman Trading will be signed soon, the officials said.

Bangladesh is all set to receive its maiden shipment of LNG from Qatar on Tuesday, said Mohammad Quamruzzaman, managing director of the Rupantarita Prakritik Gas Co, a unit of state-owned oil firm Petrobangla.

"Within the next 24 hours, we are going to receive the cargo from RasGas," he told Reuters on Monday, adding that the ship was carrying around 65,000 tonnes of LNG.

The pricing with RasGas is 12.65 percent of the three-month average price of Brent oil plus a constant of $0.50 per MMBtu.

Bangladesh, a country of more than 160 million people, could import as much as 17.5 million tonnes of LNG a year by 2025, as its domestic gas reserves dwindle and demand grows.

Categories: Energy LNG Contracts Ports Finance

Related Stories

ONGC Expands BP Partnership with Western Offshore Basin Services Contract

Oman Opens Alternative Hormuz Lanes as Shipping Recovery Continues

Oil Falls as Signs of Hormuz Recovery Weigh on Market

Inpex’s Ichthys LNG Strike Persists as Fair Work Hearing Gets Postponed

ADNOC Looks to Canada for Upstream and LNG Growth Through XRG

SBM Offshore to Sell 45% Stake in Mexico-Bound FSO to NYK

INEOS Inks LNG Supply Deal with Marubeni for Asian Markets

Mitsui Eyes New LNG Investments to Power Data Center Growth

Yinson Production, PTSC Raise Over $130M for Vietnam’s Block B FSO

Petronas Signs 20-year Charter Deal with MISC for Five LNG Carrier Newbuilds

Current News

ONGC Completes 44 Offshore Rig Moves Ahead of Monsoon Season

ONGC Expands BP Partnership with Western Offshore Basin Services Contract

Walking Into the Future: ADNOC Drilling Unveils First AI-Powered Island Rig

Yinson Production Names FSO for Murphy's Lac Da Vang Project off Vietnam

Jadestone Brings First Malaysia Campaign Well Online at 3,000 bpd

Saipem to Sell Saudi Shallow-Water Drilling Business to ADES for $285M

Oman Opens Alternative Hormuz Lanes as Shipping Recovery Continues

ASCO Sets Up Shop in Qatar to Drive Middle East Expansion

Oil Falls as Signs of Hormuz Recovery Weigh on Market

Mako Offshore Field Takes Step Toward First Gas with PT PAL Contract Award

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com