Argent LNG, which is developing a 25 million metric tonnes per annum (MTPA) LNG facility in Louisiana, has signed a non-binding agreement with the Bangladesh government to supply up to 5 million metric tons of liquefied natural gas (LNG) annually, the company announced on Friday.

This marks the first major U.S. LNG supply deal since President Donald Trump took office on Monday and, according to the parties involved, signals industry confidence in the new administration’s pro-energy policies.

Since assuming office, Trump has taken executive action to lift the Department of Energy’s pause on LNG export licenses to non-free trade agreement countries, aiming to boost U.S. LNG exports. The United States, already the world’s largest LNG exporter, is projected to double its capacity by 2028, according to the U.S. Energy Information Agency.

If completed, the Argent LNG project in Port Fourchon could supply cargoes to Petrobangla, Bangladesh’s state-owned energy company, under the agreement.

“This agreement not only guarantees a stable energy supply for Bangladesh’s growing industrial sector but also strengthens our strategic ties with the United States,” said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority.

Bangladesh has been seeking long-term energy solutions and increasing its reliance on LNG. However, being price-sensitive, the country turned to cheaper coal in 2022 when LNG prices surged following Russia’s invasion of Ukraine.

Source: Agencies 

BDST: 1212 HRS, JAN 25, 2025
SMS