Brunei ready to support Bangladesh’s energy needs through LNG supply deal
DHAKA, October 17, 2026: Brunei Darussalam has expressed its readiness to support Bangladesh’s growing energy needs through the implementation of a long-term liquefied natural gas (LNG) supply agreement, opening up fresh opportunities to strengthen energy security and deepen bilateral cooperation.
The High Commission of Brunei Darussalam in Dhaka told The Shuttle Times that discussions are underway with Bangladesh on implementing the government-to-government (G2G) agreement signed in 2022.
The agreement is expected to diversify Bangladesh’s LNG sources and strengthen its access to long-term supplies at a time when demand for natural gas continues to rise across the power, fertiliser and industrial sectors.
The Advisory Council Committee on Economic Affairs has already given in-principle approval for LNG imports from Brunei through direct procurement under a G2G arrangement, marking an important step towards advancing the proposed cooperation.
Although the agreement has yet to deliver its first shipment, ongoing discussions reflect the two countries’ efforts to move the arrangement forward and explore ways to make Brunei an additional source of LNG for Bangladesh.
Bangladesh has been importing LNG for several years and currently has master sale and purchase agreements with 23 companies. Adding Brunei as a long-term supplier could further diversify its procurement options and strengthen the resilience of its energy supply system.
According to sources, Brunei Energy Services and Trading Sdn Bhd (BEST), the designated supplier, proposed supplying 12 to 18 LNG cargoes annually, equivalent to around 0.75 million to 1.25 million tonnes per annum (MTPA), over a 10-year period beginning in 2024.
The proposal was based on a memorandum of understanding signed between Bangladesh and Brunei in April 2019, which was later extended for another five years.
A technical committee conducted negotiations on the proposed agreement's terms, while the Ministry of Power, Energy and Mineral Resources expressed support for the proposal.
The proposed supply arrangement offers Bangladesh an opportunity to build a stronger energy partnership with Brunei, whose capacity to respond to emergency requirements could be particularly valuable in supporting the country's energy security.
Reliable LNG supplies are essential for Bangladesh to sustain electricity generation, fertiliser production and industrial activities. Expanding its supplier base could give the country greater flexibility in managing future demand and international market uncertainties.
The government's in-principle approval for direct procurement is consistent with Section 68 of the Public Procurement Act, 2006, which allows direct procurement in certain circumstances, including in essential sectors.
Successful implementation of the Brunei agreement could strengthen bilateral economic cooperation while creating an additional channel for Bangladesh to secure LNG over the long term.
With discussions continuing, the proposed deal represents a positive opportunity for both countries to translate their existing commitments into practical energy cooperation, supporting Bangladesh’s growing energy requirements and further strengthening Dhaka–Bandar Seri Begawan relations.
