Bangladesh will import 232 liquefied natural gas (LNG) cargoes from U.S.-based Excelerate Energy LLC over 15 years starting in early 2026, under a long-term supply agreement.
The deal, worth an estimated $8.5 billion, is one of the country’s largest energy import contracts.
The agreement was finalised on November 23, 2023, during the tenure of the Awami League government. Under its terms, Excelerate Energy will deliver 0.85-1.0 million tonnes per annum (MTPA) of LNG to Bangladesh through 2040.
According to the government’s latest position paper, Petrobangla will import 28 cargoes during 2026-27, followed by 16 cargoes annually from 2028 to 2040. The average annual cost is expected to be around $600 million.
Alongside the long-term contract, Excelerate has also supplied LNG through the spot market, delivering 16 cargoes worth about $637 million to date. The company remains eligible to bid in future tenders, potentially supplying more than USD 200 million worth of spot cargoes each year.
Strategic expansion of U.S. energy imports
Bangladesh is also pursuing additional LNG contracts with other U.S. suppliers as part of its strategy to reduce the large bilateral trade imbalance. Officials are evaluating proposals to import roughly 10 LNG cargoes annually, valued at about $400 million.
Currently, Bangladesh imports about $800 million worth of energy from the United States each year. New LNG and fuel contracts could raise that figure to $1.5 billion, narrowing Washington’s trade surplus.
“This strategy aligns with Bangladesh’s economic diplomacy objectives,” the government paper noted. “Increased energy purchases from U.S. suppliers demonstrate a credible commitment to rebalancing bilateral trade.”
Tariff relief and trade diplomacy
Dhaka has indicated to U.S. officials that it is prepared to boost LNG and energy imports in exchange for tariff concessions.
Washington imposed a 35% reciprocal tariff on Bangladeshi exports in response to a $62 billion trade deficit in 2024. That levy has since been reduced to 20%, but further cuts are expected to hinge on reciprocal trade incentives.
Officials say Indonesia has successfully used energy purchases as leverage in its trade negotiations with the United States – a model Bangladesh hopes to replicate.
LNG infrastructure and FSRU operations
Excelerate’s role in Bangladesh dates back to 2018, when it set up the country’s first Floating Storage and Regasification Unit (FSRU). Commercial operations began in August 2018 under agreements with Petrobangla and the Energy and Mineral Resources Division.
As of June 2025, Bangladesh has paid Excelerate about $577 million in regasification charges, with another $700 million expected through 2032 – around $100 million per year.
A second FSRU was later added through Summit LNG Terminal, which Excelerate operates under a Quiet Enjoyment Agreement with the government and Summit.
Bangladesh has already paid $486 million for its operations and is expected to spend another $840 million by 2032, averaging $50 million annually.
Growing LNG dependence
Since entering the LNG market in 2018, Bangladesh has spent more than $17.6 billion to import 31.6 million tonnes of LNG, according to state-run Rupantarita Prakritik Gas Company Ltd (RPGCL).
Imports have surged from 11 cargoes in 2018 to 86 in 2024. By mid-July 2025, Bangladesh had already received 56 cargoes, with the year-end total projected at over 108. Imports are expected to rise further to 124-126 cargoes in 2026 as domestic gas output declines.
Annual imports climbed from 0.67 million tonnes in 2018 to 5.8 million tonnes in 2024. The corresponding costs also spiked, with LNG bills reaching $3.53 billion in 2022 and $3.54 billion in 2024.
The fiscal burden reflects falling domestic output, which dropped from 2,694 mmcfd in FY2017-18 to about 1,800 mmcfd in recent months.
Expansion into Petroleum and LPG
In addition to LNG, the government approved imports of 3.8 million tonnes of refined petroleum in 2024, including diesel, jet fuel, gasoline, and furnace oil.
Officials estimate that sourcing even a portion of this supply from U.S. refiners could add $100 million to American exports annually.
Bangladesh is also seeking to import 200,000 tonnes of liquefied petroleum gas (LPG) from the U.S. at $ 600-700 per tonne, worth $120-140 million annually.
“We have a plan to increase import LNG, LPG, and petroleum fuels from the U.S. to between $1.2 billion and $1.5 billion annually, which will help reduce tariff gaps between the two countries in the coming years,” Energy and Mineral Resources Division Secretary Mohammed Saiful Islam told Just Energy News recently.