Petrobangla inks deal with Gunvor for LNG supply

Staff Correspondent | Published at 05:11pm on September 19, 2017

Petrobangla, the state-run oil, gas and mineral resources corporation, on Tuesday signed a non-binding memorandum of understanding with trading agency Gunvor Singapore Pte Ltd to import Liquefied Natural Gas under long term contract.

Petrobangla and Gunvor will prepare document for commercial agreement later, said officials.

With this, Petrobangla tied up with five companies to facilitate LNG imports, Petrobangla chairman Abul Mansur Md Faizullah said at the contract signing programme.

Earlier, Petrobangla signed similar MoU with the companies of Qatar, Oman, Indonesia and Switzerland for LNG imports and its transportation to Bangladesh under long-term contracts.

Petrobangla is expected to sign a 15-year agreement with Qatar’s RasGas to import LNG, said officials.

The government plans to increase gas supplies from LNG imports amid faster depleting reserves of indigenous natural gas.

State minister for power, energy and mineral resources Nasrul Hamid said that the government planned to set up LNG-based power stations to meet the growing demand of electricity.

Besides long-term agreements with different state-owned enterprises, the government would also explore spot markets and invite tenders for mid-to-long-term contracts to import LNG, he said.

Petrobangla now supplies approximately 2,750 million cubic feet per day against a demand for more than 3,700 mmcfd gas leading to interruption on power generation and industrial productions.