Bangladesh yesterday struck a 10-year deal with Oman to import 1 million tonnes of liquefied natural gas (LNG) every year to meet its growing energy demand.
Syed Ashfaquzzaman, secretary of state-run Petrobangla, and Mahir Al Zadjali, attorney for Oman Trading International, signed the agreement at the Petrobangla headquarters in Dhaka, according to a statement.
Excelerate Energy and Summit Corporation will regasify the LNG in equal shares using their respective terminals in Moheshkhali and pump it into the national network.
The Excelerate terminal is almost ready for operations while Summit's one is expected to be complete in October.
Last month, the cabinet committee on purchase approved the draft contract with Oman. According to the draft contract, LNG from Oman would be supplied at 11.9 percent of the three-month average price of Brent oil plus $0.4 constant per million British thermal unit, a measure of the heat content of fuels or energy sources.
In September last year, the government signed a separate 15-year contract with Qatar's RasGas, which would supply 2.5 million tonnes of LNG every year.
The first consignment of LNG from Qatar has already arrived at Excelerate Energy's terminal in Moheshkhali. The supply from the terminal may start later this month.
In case of Qatar, the LNG pricing formula is 12.65 percent of the three-month average price of Brent oil plus $0.5 constant MMBTU.
At present, the country's gas supply stands at about 2,750 million cubic feet of gas per day against the demand of 3,600 mmcfd. The shortage has affected power generation as well as industries and households.
The government estimates the country's demand for gas would be 8,000mmcfd by 2041, said the statement.
Nasrul Hamid, state minister for power and energy, was present.