Bangladesh is going to import liquefied natural gas (LNG) from Malaysia. In this regard, the Cabinet Committee on Economic Affairs has given in-principle approval to the proposal of state-owned company Petrobangla.
Syed Mahbub Khan, Additional Secretary of the Cabinet Division, gave this information in a briefing on the results of the meeting on Wednesday.
He said Malaysian company Perentis Akal Sdn Bhd will supply LNG in the long term. And Petrobangla will buy it under the Rapid Supply of Electricity and Fuel (Special) Act-2010.
Minister of State for Power, Energy and Mineral Resources Nasrul Hamid was also present in the meeting held online under the chairmanship of Finance Minister AHM Mustafa Kamal.
However, no details have been given regarding the proposal made by the Energy and Mineral Resources Division on behalf of Petrobangla.
Sources said the proposal will be taken up in the meeting of the Cabinet Committee on Public Procurement for final approval.
Through this new proposal, Bangladesh has chosen Malaysia as the third country to import LNG on a long-term basis.
Bangladesh has been importing LNG from Qatar and Oman since 2018 after the establishment of two FSRUs (Floating Storage and Re-gasification Units) known as LNG terminals at Maheshkhali in Cox's Bazar.
Also, Bangladesh is meeting the growing demand of the country by importing LNG from the international spot market.
Meanwhile, a top Petrobangla official said the Malaysian company will supply 1 MTPA (million tonnes per annum) of LNG per year under the 15-year contract.
The official, on condition of anonymity, said, "We will be able to give details after the final approval of the proposal by the cabinet committee."
Bangladesh signed a new deal with Qatar on June 1 to get an additional one and a half million tonnes per annum (MTPA) of LNG annually for the next 15 years from 2026, in addition to the existing deal. Besides, Bangladesh signed another agreement on June 20 to import more LNG from Oman, a Middle Eastern country.
According to the new agreement, Oman state-owned company OQT will supply 0.25-1.5 million metric tons per annum (MTPA) of LNG to Bangladesh over 10 years from 2026.
However, no price or financial details of the deal were disclosed at the event.
Bangladesh has been desperate to increase its LNG imports under long-term contracts to avoid frequent price fluctuations in the global energy market.
As part of this move, a Malaysian company has been selected to supply the LNG.
Total natural gas production is about 3 thousand million cubic feet per day (mmcfd) against the country's demand of 4 thousand mmcfd. It has a shortfall of about 1,000 mmcfd. Of the total production, 700 mmcfd is imported while 2,300 mmcfd gas is produced locally in the country.