Bangladesh has signed a non-binding agreement with a US plant developer, Argent LNG, to purchase up to 5 mill tonnes of LNG per annum.
Argent LNG is developing a 25 mill tonnes per annum LNG export facility at Port Fourchon, Louisiana.
This is the first major US LNG supply deal reported since US President Donald Trump took office last week, according to Argent LNG.
Since becoming President, Trump has taken action to end the US Department of Energy's (DoE) pause on licenses to export LNG to countries that do not have free-trade agreements with the US, in an attempt to increase US LNG exports.
If the Argent LNG project in Port Fourchon gets the go ahead, the cargoes will be destined for Bangladesh’s state owned energy company, Petrobangla, according to the agreement.
Ashik Chowdhury, Bangladesh Investment Development Authority Chairman, said: "This agreement not only ensures a reliable energy supply for Bangladesh’s expanding industrial base but also strengthens our strategic partnership with the US."
Bangladesh is highly price-sensitive and in 2022, as LNG prices surged following Russia's invasion of Ukraine, the country moved back to using more affordable coal.
