Bangladesh set to open new LNG supply route with Algeria

DHAKA, Oct 8: Bangladesh is set to open a new source of liquefied natural gas (LNG) from Algeria as the country seeks to secure energy supplies amid growing domestic demand, diplomatic and energy sources said.

Dhaka and Algiers are expected to sign a memorandum of understanding (MoU) on October 20 to pave the way for Bangladesh’s first LNG imports from Algeria, with the two sides also exploring government-to-government (G2G) arrangements for fertiliser supplies.

The initial volume of LNG to be imported has not yet been finalised, the sources said.

The planned agreement would mark a new development in Bangladesh’s efforts to diversify its LNG supply sources and strengthen energy cooperation with major gas-producing countries.

Home Minister Salahuddin Ahmed disclosed the plan following a meeting with Algerian Ambassador to Bangladesh Dr Abdelouahab Saidani at his ministry office on last Monday.

He said Bangladesh would seek to import LNG and fertiliser from Algeria under a G2G framework.

Salahuddin also urged Algeria to expand the bilateral trade basket in Bangladesh’s favour, particularly by increasing imports of Bangladeshi garments and pharmaceutical products.

He further called on Algiers to recruit skilled Bangladeshi professionals, including doctors and nurses.

The latest move follows a high-level virtual meeting between Bangladesh and Algeria on September 10 to explore mechanisms for supplying LNG to Bangladesh.

Bangladesh Ambassador to Algeria Md Najmul Huda told Algerian media that the meeting between Algerian State Minister for Hydrocarbons Mohamed Arkab and Bangladesh’s Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud was “very cordial”.

The two ministers agreed in principle to advance cooperation in the energy sector through both short- and long-term arrangements, the ambassador said.

Working groups from the two countries are expected to finalise the quantity, type and cost of the energy to be supplied.

The meeting brought together senior officials from both countries, including Noureddine Daoudi, chief executive officer of Sonatrach, Algeria’s state-owned oil and gas company, as well as senior officials from Petrobangla, Bangladesh Petroleum Corporation and Rupantarita Prakritik Gas Company Ltd.

Bangladesh expressed interest in concluding contracts for LNG purchases from Algeria, citing Sonatrach’s position as a major supplier in the international gas market, according to Algerian media outlet Al Nahar Online.

The discussions also went beyond LNG.

The two sides reviewed potential partnerships between Sonatrach and Bangladeshi companies to meet Bangladesh’s growing demand for LNG, liquefied petroleum gas and petroleum products.

They also discussed cooperation in energy infrastructure development.

The proposed LNG arrangement comes as Bangladesh continues to face rising demand for natural gas from power generation, industry and other sectors. Securing additional suppliers could provide Dhaka with greater flexibility in managing future energy requirements.

The Algerian partnership could also expand beyond the immediate purchase of LNG, with Sonatrach and Bangladeshi companies potentially working together on energy infrastructure and other petroleum-related projects.

Both sides have agreed to follow up on the discussions through a joint working group and work towards concrete agreements on energy cooperation.

For Bangladesh, the October 20 MoU could therefore be the first formal step towards bringing Algerian LNG into the country’s energy supply chain while simultaneously expanding broader economic ties with the North African country.