Bangladesh signs groundbreaking LNG agreement with a US company

Bangladesh has signed a notable non-binding agreement with US-based Argent LNG to secure an annual supply of up to 5 million tonnes of liquefied natural gas (LNG).  

This represents the largest LNG deal by a US company since Donald Trump became president, reflecting the administration's energy-focused policies, according to Reuters.  

Argent LNG is currently developing infrastructure in Louisiana with the capacity to supply 25 million tonnes of LNG annually. Once the Port Fourchon project is complete, the company will deliver LNG to Bangladesh's state-owned Petrobangla under the agreement.  

"This agreement will not only ensure a reliable energy supply for Bangladesh's growing industries but also strengthen our strategic partnership with the United States," said Ashiq Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority.  

For years, Bangladesh has sought long-term solutions to meet its rising energy demands and expand LNG usage. However, the 2022 Russia-Ukraine war drove up global LNG prices, leading the country to rely more on coal-based energy.  

When Trump assumed office, he lifted a suspension on LNG export licenses for countries without free trade agreements with the US, as part of efforts to promote LNG exports.  

According to the US Energy Information Administration, the US has become the world's largest LNG exporter, with export capacity expected to double by 2028.