The government has initiated a plan to import liquefied natural gas (LNG) from Brunei to support the country’s energy needs.
The Advisory Council Committee on Economic Affairs has given in-principle approval for this import, which will proceed on a government-to-government (G2G) basis through direct procurement.
Bangladesh has been importing LNG for several years, including from the spot market, with Master Sale and Purchase Agreements currently in place with 23 companies.
This decision adds Brunei as a long-term supplier, aiming to further secure the country's gas supply.
The committee approved the proposal in a meeting held on Wednesday (November 13), chaired by Finance Adviser Salehuddin Ahmed at the Cabinet Division.
According to sources, Brunei Energy Services and Trading Sdn Bhd (BEST), the designated supplier, proposed an annual supply of 12-18 LNG cargoes (0.75-1.25 MTPA) for a 10-year period starting in 2024, based on an MoU signed between Bangladesh and Brunei in April 2019, later extended for an additional five years.
Negotiations on the terms of the agreement were conducted by a technical committee, and the Ministry of Power, Energy, and Mineral Resources has expressed its support for the proposal.
The decision aims to address Bangladesh’s growing gas demand across sectors including power, fertilizer, and industry. The committee’s approval aligns with Section 68 of the Public Procurement Act (PPA) 2006, which allows for direct procurement in essential sectors.
In addition, the committee approved proposals from the Ministry of Youth and Sports to increase budgetary caps in the operational sector and to use direct procurement methods for urgent projects.