In a significant development toward energy security, Qatar has agreed to renew its Memorandum of Understanding (MoU) with Bangladesh for the continued supply of liquefied natural gas (LNG) and has pledged technical collaboration for a proposed land-based LNG terminal in Bangladesh. This promise was made by Qatar’s Minister of State for Energy Affairs, Saad bin Sherida Al Kaabi, during a meeting with Bangladesh’s Chief Adviser, Professor Muhammad Yunus, on the sidelines of the Earthna Summit held in Doha on April 22.
According to an official statement released by the Chief Adviser’s Press Wing, Kaabi reaffirmed Qatar’s commitment to supporting Bangladesh’s growing energy needs. “We want to support Bangladesh as much as possible, and we will continue doing that,” Kaabi emphasized during the discussions, signalling a robust partnership based on mutual trust and shared development goals.
The longstanding cooperation between the two countries in the energy sector has already seen remarkable progress. In September 2017, Bangladesh and Qatar entered into a long-term Sell Purchase Agreement (SPA) for LNG, allowing Bangladesh to import between 1.5 to 2.5 million tonnes per annum (MTPA) of LNG through a government-to-government (G2G) framework. Under this initial agreement, approximately forty cargoes of LNG are delivered to Bangladesh each year, significantly boosting the country’s energy supply.
Further cementing this collaboration, a second SPA was signed in June 2023, ensuring an additional supply of 1.5 MTPA of LNG for another 15 years, starting from January 2026. This strategic deal underscores Qatar’s pivotal role in Bangladesh’s energy landscape as the country seeks to diversify its energy portfolio amid increasing demand.
However, the MoU linked to these SPAs had expired earlier this year in January, creating uncertainty over future supplies. Recognising the urgency of the matter, Qatar moved swiftly to reaffirm its commitment to Bangladesh. Minister Kaabi assured that the renewal of the MoU would happen “right away,” highlighting Qatar’s intention to maintain a long-term strategic partnership.
Importantly, Kaabi stressed that long-term LNG contracts offer the most effective guarantee for energy supply security. “Long-term contracts are always the best solution for supply security,” he stated, adding that Qatar expects global LNG prices to stabilize as the country plans to significantly expand its production capacity.
Professor Muhammad Yunus, Bangladesh’s Chief Adviser, emphasized during the meeting that Bangladesh is eager to harness its energy potential in collaboration with Qatar’s expertise. “We need your help to reorganize our energy sector,” Yunus said, underscoring Bangladesh’s aspirations to modernize and fortify its energy infrastructure to meet future challenges.
Supporting these ambitions, Energy Adviser Mohammad Fouzul Kabir Khan outlined Bangladesh’s strategic plan to develop a land-based LNG terminal in Matarbari, Cox’s Bazar. The project envisions not just the construction of a terminal but also an integrated pipeline network to deliver regasified LNG (R-LNG) efficiently across the country. Khan revealed that Bangladesh’s existing LNG terminals have the capacity to handle 115 cargoes annually, and plans are underway to scale up LNG imports from Qatar to better utilize this capacity.
Moreover, discussions during the meeting extended beyond LNG. Minister Kaabi also mentioned Qatar’s intention to increase its supply of urea fertilizer to Bangladesh, further broadening the scope of economic cooperation between the two nations.
Present at the meeting were other senior Bangladeshi officials, including Foreign Adviser Md Touhid Hossain, National Security Adviser Khalilur Rahman, Bangladesh Investment Development Authority (BIDA) Chairman Ashik Mahmud, Secretary of SDG Affairs Lamiya Morshed, and Energy Secretary Mohammad Saiful Islam. Their presence highlighted the cross-sectoral significance of the Qatar-Bangladesh partnership and the government’s coordinated approach toward strengthening it.
This renewed momentum in energy cooperation comes at a crucial time for Bangladesh. The country’s energy demand is expected to rise sharply in the coming decades due to industrialization, urbanization, and economic growth. Natural gas, particularly in its liquefied form, remains vital for meeting this demand while ensuring a cleaner transition compared to more carbon-intensive fossil fuels like coal.
However, Bangladesh also faces challenges in its energy transition journey. Domestic gas reserves are declining, making LNG imports an essential part of the energy strategy. Yet, global LNG markets are volatile, and prices are susceptible to geopolitical shocks, as evidenced by the turmoil following the Russia-Ukraine conflict. In this context, long-term agreements with reliable partners like Qatar offer Bangladesh a measure of insulation against market uncertainties.
Moreover, the establishment of a land-based LNG terminal in Matarbari is a critical infrastructure project that could substantially enhance Bangladesh’s energy security. Compared to floating storage and regasification units (FSRUs), land-based terminals generally offer greater capacity, resilience, and operational efficiency. They can support larger volumes, accommodate future expansion, and reduce logistical bottlenecks, thus aligning with Bangladesh’s ambition to secure stable and affordable energy supplies for its growing economy.
For Qatar, renewing its energy partnership with Bangladesh fits into its broader strategy of expanding its global LNG customer base. Qatar remains the world’s top LNG exporter and is investing heavily in boosting production from the North Field, the largest natural gas field globally. Doubling production capacity will not only help Qatar maintain its market leadership but also enable it to offer competitive prices and flexible supply terms to key partners like Bangladesh.
At a strategic level, the deepening of energy ties between Qatar and Bangladesh illustrates the evolving dynamics of global energy diplomacy. It shows how emerging economies like Bangladesh are seeking to secure diversified, long-term energy supplies while developed energy exporters like Qatar are forging new partnerships to consolidate their global influence.
Energy, in this sense, is no longer merely about supply and demand; it has become a cornerstone of international relations, economic development, and strategic stability. By renewing their MoU and planning future collaboration, Bangladesh and Qatar are setting an example of how mutual cooperation can serve national interests while contributing to global energy security.
As the world grapples with the twin challenges of ensuring energy access and transitioning to cleaner sources, partnerships like these will become increasingly important. Bangladesh’s proactive approach, supported by Qatar’s resources and expertise, promises not only to meet immediate energy needs but also to lay the foundation for a sustainable and resilient energy future.
In conclusion, the renewed commitment between Qatar and Bangladesh represents more than just an extension of an MoU. It symbolizes a shared vision for energy security, economic cooperation, and sustainable growth. As both nations work out the technical details in the coming months, their collaboration stands as a testament to the power of strategic energy partnerships in shaping a better future for all.
