Bangladesh has signed a non-binding agreement with a United States firm, Argent LNG, to purchase up to five million tonnes of liquefied natural gas annually.
Argent LNG is developing a 25 million tonnes per annum (MTPA) LNG facility in Louisiana.
This is the first major US LNG supply deal since president Donald Trump took office on Monday, according to a statement issued by Argent LNG.
Since coming to power, Trump has taken executive action to end the Department of Energy鈥檚 pause on licences to export the super-chilled gas to countries that do not have free trade agreements with the US, as he tries to increase US exports of LNG.
If the Argent LNG project in Port Fourchon is completed, its cargoes could be sold to Petrobangla (Bangladesh Oil, Gas and Mineral Corporation), according to the agreement.
鈥楾his agreement not only ensures a reliable energy supply for Bangladesh鈥檚 expanding industrial base but also strengthens our strategic partnership with the United States,鈥� said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority.
Bangladesh has been striving to address its long-term energy needs by expanding its reliance on LNG. However, the country remains highly price-sensitive. In 2022, as LNG prices surged following Russia鈥檚 invasion of Ukraine, Bangladesh shifted back to using more affordable coal.