Bangladesh has signed a long-term settlement to import liquefied pure gasoline (LNG) from Qatar on the price of 1.8 million metric tons (MMT) every year for 15 years. The settlement was signed on Thursday (June 1). Based on the settlement, Bangladesh will obtain a further 1.8 MMT of LNG yearly, beginning in 2026. The long-term LNG gross sales and buy settlement (SPA) was signed between Bangladesh Oil, Fuel and Minerals Company (Petrobangla) and Qatar Power’s LNG buying and selling arm at Qatar Power’s headquarters in Doha.
This can be a crucial information for Bangladesh. Many nations all over the world are fighting energy technology capability shortages. The world has been plunged right into a continual vitality disaster as a result of Ukraine conflict and subsequent Western sanctions on Russia. Rising oil and gasoline costs and disruptions in provide chains have had main repercussions for rising economies within the growing world, together with all oil and gasoline importing nations.
Because the quickest rising nation on the earth, Bangladesh is closely depending on gasoline and oil for secure vitality provide within the nation. The disaster within the energy and vitality sector is changing into evident. The disaster began final 12 months. At occasions the scenario is enhancing however it’s getting worse. Dues of Bangladeshi firms to overseas firms supplying vitality merchandise are growing daily. This long-term settlement is displaying a light-weight of hope when Bangladesh is fighting the vitality disaster together with the remainder of the world.
When Bangladesh is affected by vitality disaster, the sunshine of hope has been lit at that very second. By means of the elevated manufacturing of electrical energy, Bangladesh has achieved nice financial progress previously decade by enriching the nation’s industrial sector. Nonetheless, the Covid-19 world pandemic and the continued Ukraine conflict and its related syndromes have considerably disrupted gasoline and oil provides, that are essential for energy technology in Bangladesh. About 60 p.c of the nation’s energy crops are powered by gasoline. Based on the Energy Growth Board of Bangladesh, no less than 24 of the nation’s 152 energy crops presently face gasoline provide shortages. Fuel provide to energy crops has fallen to 900mmcf in opposition to demand of round 1,600mmcf. Along with excessive costs and gasoline provide disruptions, the world is witnessing excessive inflation charges and growing devaluation of native currencies in lots of nations in opposition to the US greenback. This has created a multidimensional financial disaster on the earth that has plagued each developed and growing nations. From the US to Turkey, Germany to Sri Lanka, every nation is adjusting to the altering context of meals and vitality manufacturing and provide. Nations like Australia, Indonesia, South Africa and Pakistan have already resorted to load shedding.
This assist from Qatar will assist strengthen our quick rising financial system. The world is dealing with an vitality disaster on this unstable scenario of conflict between Russia and Ukraine. We hope to beat the upcoming challenges by assembly the vitality demand.
Prime Minister Sheikh Hasina met Qatari Prime Minister Mohammad Bin Abdul Rahman Bin Jassim Al Thani in the course of the Qatar Financial Discussion board, the place they mentioned strengthening bilateral relations and growing vitality cooperation between the 2 nations.
In a bilateral assembly on the Qatar Financial Discussion board held in Doha, Qatar, Prime Minister of Bangladesh Sheikh Hasina expressed the will for nearer vitality cooperation between the 2 nations. Qatari Prime Minister Thani assured Bangladesh of Qatar’s dedication to additional strengthen their pleasant relations and emphasised their standing as true associates. Prime Minister Sheikh Hasina appreciated Qatar’s help in offering stability to Bangladesh and requested its continued help within the vitality sector. In response, Prime Minister Al Thani assured that Qatar would totally help Bangladesh in assembly its vitality wants.
Throughout their assembly at Raffles Towers in Doha, Prime Minister Al Thani expressed Qatar’s eager curiosity in strengthening pleasant relations with Bangladesh. He referred to as Bangladesh a real good friend and praised Prime Minister Sheikh Hasina for bringing stability to the nation. In response, Prime Minister Sheikh Hasina expressed her want for Bangladesh’s vitality cooperation, and the Emir of Qatar assured Bangladesh of all amenities to produce bigger LNG from his nation to fulfill the nation’s vitality wants. This can be a crucial information for Bangladesh. On March 23, 2023, Emir Sheikh Tamim bin Hamad Al Thani instructed Prime Minister Sheikh Hasina in a gathering at Amiri Diwan in Doha, I promise you that I gives you all types of amenities as Emir as a result of Bangladesh is a pleasant nation.
Emphasizing the significance of Qatar’s help in assembly Bangladesh’s rising vitality wants, Prime Minister Sheikh Hasina stated, “We would like you (Qatar) to assist us with vitality. In response, Prime Minister Al Thani assured Bangladesh of Qatar’s dedication of all doable help.
It’s certainly one other milestone within the robust bilateral relations between the 2 pleasant nations with lengthy standin bilateral ties based mostly on mutual respect, values, frequent spiritual foundations, tradition and traditions.
–Emphasizing the significance of Qatar’s help in assembly Bangladesh’s rising vitality wants, Prime Minister Sheikh Hasina stated, “We would like you (Qatar) to assist us with vitality. In response, Prime Minister Al Thani assured Bangladesh of Qatar’s dedication of all doable help.
That is certainly one other milestone within the robust bilateral relations between the 2 pleasant nations, which have long-standing bilateral ties based mostly on mutual respect, values, frequent spiritual foundations, tradition and traditions. With the expansion of Bangladesh’s financial system and enhance in per capita earnings, the demand for vitality can be growing quickly. Present energy technology capability stands at 25 thousand 284 MW.
The federal government has set a goal of 40,000 MW by 2030 and 60,000 MW by 2041. Electrical energy protection has reached one hundred pc throughout the nation. Bangladesh has emerged as one of many quickest rising economies globally. As a comparatively clear vitality supply, LNG is a precedence to fulfill rising vitality demand. LNG imports will assist fill the nationwide gasoline grid community arrange throughout the nation.
Bangladesh will obtain greater than 3.5 million tons of LNG from Qatar yearly. This provide reinforces our continued dedication to making sure vitality safety for valued prospects like Bangladesh and offering them with the dependable vitality they want for socio-economic growth and prosperity.”
With this new SPA, Qatar Power reaffirms its place because the LNG provider of alternative for its companions within the South Asian LNG market. Qatar presently provides greater than 3.5 million tons of LNG to Bangladesh yearly.
Bangladesh already has a 15-year LNG SPA settlement with Qatar for the availability of 1.8-2.5 MTPA of LNG which was signed on September 25, 2017. From the beginning of supply on September 9, 2018 to Could 31, 2022, Petrobangla has efficiently obtained 11.746 million metric tons of LNG by way of 191 LNG cargoes.
In 2017, Bangladesh signed a 15-year settlement to purchase gasoline from Qatar. That settlement was far-reaching and clever. Based on a 15-year deal signed in 2017, Bangladesh now imports about 40 containers of gasoline, which interprets to 1.8-2.5 MTA. However now Bangladesh desires bigger provide of LNG from Qatar.
Bangladesh and Qatar have ongoing cooperation on varied bilateral points, together with labor migration (8 million Bangladeshi staff and US 1.3 billion in remittances), vitality cooperation (15-year G-to-G NLG settlement), and continued assist for the Rohingya. It continues to buy liquefied pure gasoline from Qatar and Oman below long-term contracts and imports about 4 million tonnes of liquefied gasoline yearly.
The settlement with Qatar will expire in 2032 and with Oman in 2029. Qatar is among the high vitality producing nations. Bangladesh has already signed a 15-year G-to-G LNG settlement with Qatar. Nonetheless, as a result of Ukraine disaster, Western sanctions on Russia and the following enhance in gasoline costs, there may be an vitality disaster in Bangladesh. Bangladesh is presently struggling to fulfill the rising demand for pure gasoline as a result of declining manufacturing of pure gasoline from native gasoline fields and excessive costs of LNG within the worldwide market.
Qatar is an oil-rich nation within the Center East. The nation is basically depending on overseas labor to assist its financial system: 89.5 p.c of Qatar’s residents are overseas nationals. In distinction, Bangladesh is among the world’s largest labor exporters. About 400,000 Bangladeshi expatriates work there, which is 12.5 p.c of Qatar’s whole inhabitants. The oil-rich nation is undoubtedly an necessary nation for expatriates and migrant staff in Bangladesh.
In June 2017, Bangladesh signed an settlement with Qatari firm Rasgas to obtain 2.5 million tons of LNG yearly for the subsequent 15 years. You will need to notice that the remittance movement from Qatar has touched US 1 billion within the final 5 years. As Bangladesh is affected by vitality disaster, Qatar will stand by Bangladesh to fulfill its rising vitality wants.
Bangladesh and Qatar have not too long ago strengthened their bilateral relations. Qatari businessmen and officers have already proven curiosity in investing in Bangladesh’s vitality sector, LPG storage terminals, energy and infrastructure sectors. Bangladesh has already pursued Qatar for pressing LNG and prolonged loans for provides at comparatively low costs. Lengthy-term contract of LNG will assist Bangladesh in vitality safety by offering emergency provide.