Bangladesh Signs Largest-Ever Deal with Argent LNG: Potential and Uncertainty

According to a Facebook post by the Executive Chairman of BIDA, Ashik Chowdhury, Bangladesh has signed the largest-ever deal with the United States-based Argent LNG for importing LNG, amounting to 5 million tons annually.

In his Facebook post, Ashik Chowdhury refers to this as the first and largest deal with the Trump administration. He says,

“In the coming years, whenever we approach the Trump administration on various issues, we will be able to say that Bangladesh was its first partner. With their ‘America First,’ we have ‘Bangladesh First.’ And for us, it is ‘Bangladesh’s Interest First!'”

He further mentions that the details of this deal have been published on various international news sites such as Yahoo and Reuters. What he did not share in his post is available on Reuters’ news site. Bangladesh has signed an agreement with Argent LNG, a Louisiana-based LNG company. The agreement states,

“If the Argent LNG project in Port Fourchon is completed, its cargoes could be sold to Petrobangla, a Bangladesh state-owned company, according to the agreement.”

This means that if Argent LNG completes its Port Fourchon project, LNG could be supplied to Petrobangla.

What is the status of Port Fourchon?

When visiting Argent LNG’s site, there is no mention of Bangladesh in the context of the deal, but there is detailed information about Port Fourchon. It states that in 2024, Argent LNG has signed a long-term exclusive lease agreement with Port Fourchon, marking a significant milestone in the company’s journey to becoming a leading LNG producer. The export activities from this port are expected to begin in 2029/2030. It further mentions,

“We are prepared to make a significant impact in the LNG industry both within the United States and globally.”

Argent LNG is expected to gain the capability to export LNG before 2029/2030. Deals with such companies are typically made through Memorandums of Understanding (MOUs), not purchase agreements, which Ashik Chowdhury did not mention in his post. Argent LNG refers to this as a Heads of Agreement (HOA). Moreover, no representative from the purchasing entity, “Petrobangla,” was present at the signing of this agreement, raising questions about the legitimacy of this deal.

In November 2024, Bangladesh signed an LNG purchase agreement with Peter Haas’s company, Accelerate Energy. As a result, on January 8, Petrobangla approved the import of 3.36 million metric British thermal units (MMBtu) of liquefied natural gas (LNG) from the United States. The total cost of this LNG import will be 75.2 billion Bangladeshi Taka, with a price of $15.69 per MMBtu. The order was placed at $2.5 higher per unit than the market price.

Details: Order for LNG Imports at $2.5 Higher than Market Price from Peter Haas’s Company

Additionally, in 2023, Bangladesh signed an LNG purchase agreement with Qatar. According to the deal, Qatar, a fuel-rich Middle Eastern country, will sell 1.8 million tons of LNG annually to Bangladesh for the next 15 years, starting in 2026. The agreement will be effective from 2026 to 2040, under which 12 cargos will arrive in Bangladesh in 2026 and 24 cargos in 2027.

The agreement with Argent LNG is essentially a memorandum of understanding, with no potential export dates or price details mentioned. Everything remains uncertain because Argent LNG can only mention price, quantity, and feasibility after its port operations begin in 2029/2030. Until then, this is merely an agreement letter or, perhaps, a publicity stunt to please the Trump administration.