Bangladesh signs LNG deal with US company ‘Argent’

Bangladesh has signed a non-binding agreement with US-based Louisiana company, Argent, to purchase up to 5 million metric tons of liquefied natural gas (LNG) annually.

The company announced the deal in a statement on Friday, January 24, which was confirmed by the Chief Adviser's Press Secretary, Shafiqul Alam, citing a Reuters report. This marks the first significant LNG supply agreement from the US since President Donald Trump's inauguration, reflecting confidence in the administration’s pro-energy policies.

Since taking office, President Trump has lifted a moratorium on LNG export licenses, strengthening the US's position as the world’s largest LNG exporter with plans to double its capacity by 2028.

The agreement specifies that if Argent’s LNG project in Louisiana’s Port of Forche is implemented, the cargoes could be supplied to Petrobangla, Bangladesh’s state-owned energy entity.

Ashik Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), stated that the deal would ensure a reliable energy supply for the country’s growing industrial sector, further bolstering its strategic ties with the United States.

Bangladesh is seeking long-term energy solutions and is focusing on increasing LNG use, although the country is sensitive to price fluctuations. In 2022, rising LNG prices due to the Russia-Ukraine conflict led Bangladesh to resume using cheaper coal.

Notably, Argent LNG is constructing a facility in Louisiana with a production capacity of 25 million metric tons annually.