According to a statement released by the firm on Friday, Argent LNG, which is building a 25 million metric tons per year (MTPA) LNG project in Louisiana, has reached a non-binding deal with the Bangladeshi government to buy up to 5 million metric tons of LNG each year.
This is the first significant U.S. LNG supply agreement since President Donald Trump took office on Monday, and the parties say it shows that business is confident in the pro-energy policies of the new administration.
In an effort to boost U.S. LNG exports, Trump has taken unilateral action since taking office to lift the Department of Energy’s ban on permits to export the super-chilled gas to nations without free trade agreements with the United States. According to the U.S. Energy Information Agency, the United States is now the world’s top LNG exporter and is predicted to treble its capacity by 2028.
The agreement states that Petrobangla, a state-owned firm in Bangladesh, may purchase the cargoes from the Argent LNG project in Port Fourchon upon its completion. Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority, stated, “This agreement not only strengthens our strategic partnership with the United States but also ensures a reliable energy supply for Bangladesh’s expanding industrial base.”
In an attempt to find sustainable answers to its energy problems, Bangladesh has been trying to increase its use of LNG. But the country is also price sensitive, and when LNG prices increased in 2022 due to Russia’s invasion of Ukraine, it returned to burning cheaper coal.
Source: Reuters
