Natural Gas: long-term agreement between Qatar and Bangladesh to resolve Dhaka’s energy crisis
QatarEnergy has signed an agreement to supply liquefied natural gas (LNG) to Bangladesh state-owned PetroBangla for 15 years starting in 2026, Saad al-Kaabi, chief executive officer of the Qatar state-owned company, said on Thursday.
LNG buyers are looking for long-term supplies to secure gas from Qatar's massive expansion projects and insulate themselves from spot price volatility.
Bangladesh, in particular, was one of the South Asian economies hardest hit by soaring spot LNG prices and withdrew from the spot market last year, along with other buyers such as India and Pakistan.
Even some European governments, including Germany's, which before the energy crisis were reluctant to sign long-term deals due to concerns about emissions, are now open to such deals.
“If a European is negotiating with me and has a problem, he will tell me 'I have a problem with duration', I've never heard that,” QatarEnergy's al-Kaabi said during a news conference, as reported by Reuters. A curious statement because, at least in theory, European countries are decarbonising themselves.
The deal with Bangladesh is the latest long-term deal for LNG from Qatar's future North Field East (NFE) and North Field South (NFS) expansion projects.
“The majority (of LNG exports) will go to Asia and the other to Europe and we will be more than depleted on NFE and NFS volumes,” said the senior QatarEnergy executive.
In April, QatarEnergy said it would transfer a 5% stake in the development of the huge NFE expansion project, the largest project in the history of the LNG industry, to China's Sinopec. Last year the Qatari company selected TotalEnergies, Shell and ConocoPhillips as partners to hold minority stakes in the NFE and NFS expansion projects.
Qatar announced the world's largest LNG project in 2021, which is expected to boost its LNG production capacity from 77 million tonnes per year (mmtpa) to 110 mmtpa.
Thanks to our Telegram channel you can stay updated on the publication of new articles from Economic Scenarios.
The article Natural Gas: long-term agreement between Qatar and Bangladesh to resolve Dhaka's energy crisis comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gas-naturale-accordo-a-lungo-termine-fra-qatar-e-bangla-desh-per-risolvere-la-crisi-energetica-di-dacca/ on Fri, 02 Jun 2023 06:00:02 +0000.