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Bangladesh Leans Towards Long-Term LNG Deals: Platts

LNG

Recent signings of long-term LNG contracts by Petrobangla highlights Bangladesh’s preference for securing term supply rather than relying on the spot market, according to Platts.

  • Bangladesh is prioritising supply security, while bureaucratic decision making leaves its operations not conducive to spot trading.
  • The deals are likely prices around a 13% slope to crude with a 30 cents/MMBtu constant, Platts reported.
  • Petrobangla has finalised four long-term LNG deals in the past year. In June, Bangladesh signed a 15-year deal with QatarEnergy starting 2026.
  • Bangladeshi counterparties are likely to pay a premium over market rates due to the sovereign guarantees needed and Bangladesh's lower credit rating.

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