Bangladesh Approves 13-Year LNG Import Deal With US Firm Worth Tk714.95 Billion
The Bangladesh government has given preliminary approval to a 13-year agreement to import Liquefied Natural Gas (LNG) from US-based company Gunvor USA LLC, a deal estimated to be worth Tk714.95 billion at current market prices.
The decision was approved in principle on Tuesday during a meeting of the Cabinet Committee on Economic Affairs at the Secretariat, chaired by Finance and Planning Adviser Amir Khasru Mahmud Chowdhury. While the finance adviser did not address the media after the meeting, the Ministry of Finance confirmed the approval through an official press release.
Under the agreement, Petrobangla, operating under the Energy and Mineral Resources Division, will import 78 LNG cargoes from Gunvor between 2026 and 2039, averaging six cargoes annually. The first shipments are expected to arrive later this year.
Meeting Rising Energy Demand
According to the proposal submitted by the Energy and Mineral Resources Division, Bangladesh currently imports LNG under seven contracts with suppliers from the United States, Qatar, Oman, and Saudi Arabia. The government said the new agreement is intended to strengthen the country's energy security and meet rising domestic demand for natural gas.
Questions Over G2G Structure
The LNG purchase will be made under a government-to-government (G2G) framework. However, the arrangement has drawn attention because Gunvor USA LLC is a privately owned company, whereas G2G agreements are generally signed between governments or state-owned entities.
The unusual structure has prompted legal and procurement experts to question whether the agreement fully complies with Bangladesh's public procurement regulations.
Energy Adviser Defends the Deal
Responding to the concerns, Power, Energy and Mineral Resources Adviser Iqbal Hassan Mahmood Tuku said the government has not yet made an irreversible commitment to the full 13-year term.
He noted that Gunvor's LNG shipments are scheduled to begin in September, and the government will assess the company's performance before deciding whether to continue the long-term arrangement.
Tuku also said the procurement is being carried out under the trade framework established with the United States during the interim government's tenure and is being executed in accordance with the Public Procurement Rules (PPR).
"If the agreement had violated procurement regulations, we would not have proceeded with it," he said.
Deal Valued at More Than Tk714 Billion
Each LNG cargo contains approximately 3.36 million MMBtu (Million British Thermal Units), equivalent to around 95 million cubic metres of natural gas.
With international LNG prices currently hovering between US$21.5 and US$22 per MMBtu, a single cargo is valued at more than US$70 million, or roughly Tk9.17 billion based on current exchange rates.
At existing prices, the total value of the planned 78 cargoes is estimated at Tk714.95 billion, although the final cost could increase if global LNG prices continue to rise.
Procurement Compliance Under Review
The Bangladesh Public Procurement Authority (BPPA) participates in Cabinet committee meetings to ensure compliance with procurement laws.
Newly appointed BPPA Chief Executive Officer Abu Sayed Md. Kamruzzaman declined to comment, saying he had only assumed office that day.
Former BPPA Director General Faruque Hossain, however, questioned the legal basis of the proposed G2G arrangement.
He noted that under the Public Procurement Rules 2025, G2G transactions are generally valid only when the counterpart is a foreign government, a state-owned enterprise, or an institution officially nominated by a government.
"If the US government formally nominated Gunvor USA LLC, the arrangement may be justified," Hossain said. "If not, the legal foundation of the G2G framework could be challenged in the future."
The government has not yet clarified whether Gunvor USA LLC has been officially designated by the US government for the agreement.
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