Excelerate Energy signs 15-year deal to supply LNG to Petrobangla

SINGAPORE, Nov 9 (Reuters) - U.S.-based Excelerate Energy Inc said on Wednesday it had signed a long-term sales and purchase agreement to supply Bangladesh's state-owned company Petrobangla with liquefied natural gas (LNG) for 15 years beginning in January 2026.

Under the agreement, Excelerate Energy will deliver 0.85 million metric tons per year of LNG in 2026 and 2027, and 1 million tons per year from 2028 to 2040, the U.S. company said.

The LNG will be supplied on a delivered ex-ship (DES) basis.

Excelerate Energy developed and is operating Bangladesh's first floating LNG terminal, and also deployed a second floating storage and regasification unit as the country's second floating LNG terminal.

The agreement with Excelerate Energy comes after Petrobangla signed deals this year with QatarEnergy and Oman Trading International.

QatarEnergy will provide 1.8 million tons a year of LNG supply for 15 years from 2026, while Oman Trading International will supply 0.5 million tons to 1.5 million tons of LNG per year for 10 years, also from January 2026.

Bangladesh relies on imported LNG for nearly three-quarters of its power generation, amid dwindling domestic gas reserves and a lack of sufficient coal-fired capacity.

But a surge in gas prices last year following Russia's invasion of Ukraine forced Bangladesh to curb spot LNG imports and ration gas supplies, driving down power output despite a rise in demand and leading to frequent power cuts.

Bangladesh's LNG imports fell 13% in 2022 from the previous year to 4.43 million tons, according to data firm Kpler.

As gas prices eased from 2022's record highs, however, Bangladesh began ramping up spot imports, and has shipped in 4.55 million tons of LNG so far this year. (Reporting by Emily Chow; Editing by Jamie Freed)