Bangladesh signs long-term LNG deal with US supplier Gunvor

Bangladesh has approved a long-term liquefied natural gas (LNG) purchase agreement with US-based Gunvor, securing 117 cargoes over 2026-2038 under a state-to-state deal. The move is part of Dhaka's strategy to diversify energy sources and cushion against global supply shocks, particularly disruptions in Qatari exports linked to the US-Israeli conflict with Iran.

The government also cleared the procurement of eight additional LNG cargoes through direct purchase from international suppliers, covering both immediate and medium-term needs.

Under the Gunvor agreement, Bangladesh will receive five cargoes in 2026, six in 2027, and six in 2028. Pricing for the 2026 and 2027 cargoes, plus three of the 2028 shipments, will be linked to the Japan Korea Marker (JKM) index plus 8.75 cents per million British thermal units (mmBtu). The remaining three 2028 cargoes and ten cargoes per year from 2029 to 2038 will be priced at 121% of the US Henry Hub benchmark plus $5.20 per mmBtu.

The direct procurement includes two cargoes from Hong Kong-based Zhenyu Shipping Company Limited at a fixed $14.95 per mmBtu. The other six cargoes will be priced at JKM plus $0.54 per mmBtu, sourced from UK-based Blackcube International Limited, Oman's Maxwell International SPC, and Australia's Global Fuel Supplies Pte Ltd, with Malaysia's Plentitude Energy Sdn Bhd facilitating the purchases.

These agreements come as QatarEnergy has declared force majeure on some long-term contracts, citing the regional conflict and its impact on LNG production and shipping routes. Bangladesh's move to lock in US supply and spot cargoes aims to reduce its vulnerability to such disruptions and ensure stable gas availability for power generation and industry.