Bangladesh has discussed a possible new long-term liquefied natural gas (LNG) supply agreement with QatarEnergy, exploring ways to diversify supplies through the company's international portfolio of sources and transportation routes amid growing concerns over energy security.
State Minister for Power, Energy and Mineral Resources Aninda Islam Amit held bilateral talks with Saad bin Sherida Al Kaabi, Qatar's minister of state for energy affairs and also QatarEnergy President and CEO, in Saudi Arabia yesterday (11 October), according to a press release issued by the Ministry of Power, Energy and Mineral Resources.
The discussions covered Bangladesh's growing gas demand, its existing LNG import arrangements and the possibility of a new long-term supply contract.
The meeting also highlighted the potential to diversify LNG supply sources and routes through QatarEnergy's international portfolio, an important consideration for Bangladesh as it seeks to strengthen energy security amid disruptions to international fuel supply chains.
Qatar has been a major LNG supplier to Bangladesh under long-term contracts.
However, disruptions to Qatari LNG supplies following the US-Israel war on Iran and the closure of the Strait of Hormuz have increased uncertainty over deliveries, putting additional pressure on Bangladesh's efforts to secure gas for power generation, industry and other consumers.
The latest discussions come as Bangladesh seeks to broaden its supplier base and reduce exposure to supply disruptions in any single region or shipping route.
Saudi Arabia talks focus on energy security
In a separate meeting, Amit sought Saudi Arabia's cooperation in strengthening Bangladesh's energy security and expanding bilateral cooperation in the energy sector.
He met Saudi Assistant Minister of Energy Nasser Al-Qahtani, with discussions focusing on long-term energy cooperation, the establishment of a framework for collaboration between the two countries and potential support for Bangladesh's energy development plans.
Amit highlighted the need for long-term energy supply arrangements and cooperation in developing LNG infrastructure, including terminal facilities.
He also raised the prospects for offshore and onshore gas exploration as Bangladesh seeks to strengthen domestic supply and meet its growing energy requirements.
The state minister expressed hope that Saudi Arabia would extend its support to help Bangladesh achieve its energy goals by 2030.
He also stressed the importance of exchanges between representatives of the two countries and the establishment of a cooperation framework to advance joint initiatives.
The Saudi side said Bangladesh holds particular importance as a brotherly country and expressed optimism about strengthening existing cooperation in energy security and other development areas.
The discussions with Saudi Arabia are significant as Bangladesh seeks additional international partners to support its energy needs while dealing with uncertainty in global LNG markets.
ACWA Power expresses interest in renewable energy investment
Amit also met Samir J Serhan, chief executive officer of Saudi energy and water company ACWA Power, to discuss investment opportunities in Bangladesh's renewable energy sector.
ACWA Power expressed interest in investing in the sector, according to the ministry's press release.
The meetings took place on the sidelines of the 17th International Energy Forum in Riyadh. Members of the Bangladesh delegation and officials from the Bangladesh Embassy in Saudi Arabia were also present.