Excelerate Energy, a US-based liquefied natural gas (LNG) company, and Bangladesh Oil, Gas & Mineral Corporation (Petrobangla), a government-owned national gas company of Bangladesh, have entered into a long-term LNG sale and purchase agreement (SPA).

As per the agreement, Petrobangla has committed to buying 0.85 million tonnes per annum (MTPA) to 1MTPA of LNG from Excelerate Energy over a 15-year period starting from January 2026.

The delivery plan includes 0.85MTPA of LNG in 2026 and 2027, followed by 1MTPA from 2028 to 2040.

Excelerate Energy president and CEO Steven Kobos said: “Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG. Natural gas is important to Bangladesh’s economy, and we look forward to partnering with Petrobangla to help the country meet its rapidly growing energy needs.

“Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders.”

According to Excelerate Energy, the long-term SPA marks the next stage of its plan for integrating its business in Bangladesh.

In 2018, the company initially introduced LNG to the Bangladesh market through the commissioning of its $179.5m Moheshkhali LNG floating storage and regasification unit (FSRU) terminal.

Over the subsequent years, the company expanded its presence by deploying a second FSRU terminal in the Bay of Bengal and leveraging its infrastructure to secure spot LNG cargo sales into Bangladesh.

Presently, Excelerate Energy’s two FSRUs contribute roughly 25% of the country’s natural gas supply.

Based in Texas and listed on the New York Stock Exchange (NYSE), the company offers an array of flexible regasification services that encompass FSRUs, infrastructure development, and LNG supply.

Last month, Excelerate Energy signed a 10-year contract with Brazil’s Petróleo Brasileiro (Petrobras) for chartering the Sequoia FSRU.

Commencing on 1 January 2024, Excelerate Energy, under the time charter party, operation, and services agreement, will extend the deployment of the FSRU for regasification services in Brazil, mainly at the Bahia Regasification Terminal in Salvador, Bahia.