Excelerate Energy, Petrobangla Sign 15-Year LNG Sale, Purchase Agreement

Excelerate Energy has signed a long-term LNG sale and purchase agreement (SPA) with Bangladesh-based Petrobangla. According to the terms of the SPA, Petrobangla will purchase 0.85 to 1.0 million tons per annum (MTPA) of LNG from Excelerate over a 15-year period, beginning in January of 2026. Petrobangla will receive 0.85 MTPA of LNG in 2026 and 2027, with the supply increasing to 1.0 MTPA from 2028 to 2040.

The 15-year SPA aligns with Excelerate’s strategy to integrate its business in Bangladesh. The company first entered Bangladesh’s market with the development of its integrated Moheshkhali LNG floating storage and regasification unit (FSRU) terminal. Since then, Excelerate deployed an FSRU terminal in the Bay of Bengal and delivers approximately 25% of the country’s natural gas supply.

Excelerate's FSRUs in the Bay of Bengal; Image Credits: Excelerate Energy

“Natural gas is important to Bangladesh’s economy, and we look forward to partnering with Petrobangla to help the country meet its rapidly growing energy needs,” said Steven Kobos, President and Chief Executive Officer of Excelerate. “Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders.”