Bangladesh to Sign More Supply Deals After Qatar Import Agreement

13 October 2017: Bangladesh is expected to sign more supply deals and start importing spot LNG cargoes next year after government ministries and the cabinet formally approved the 15-year supply deal with Qatargas.

In the final deal signed on Sept. 25 in Doha, pricing for the government-to-government deal was done at a 12.65% slope to the rolling three-month average of Brent plus a constant of $0.50/MMBtu. That is well below the bilateral deal Qatar sealed in 2016 with Pakistan at a 13.37% slope, but slightly higher than first 15-year contract signed by Pakistan’s PLL with Eni at a 12.29% slope in January this year (see LNGWM, Mar ’17). Pricing for the Eni deal is understood to have been revised later to 11.8%. Under the deal with Qatargas, Bangladesh will receive 1.8 MMt/y in the initial years and the volume will eventually ramp up to 2.5 MMt/y. Supply from Qatar will be delivered to the country’s proposed first and second floating storage and regasification units (FSRU).

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