TDS Desk:

Bangladesh has reached a significant agreement with the US-based company to purchase five million tonnes of Liquefied Natural Gas (LNG) annually to meet its growing domestic demand.

Bangladesh government signed a non-banding deal with Argent LNG, which is developing 25 million tonnes of LNG per annum in Louisiana, Reuters reports quoting a press release of the company on Friday.

It is the first major LNG supply deal with the US since President Donald Trump took office on Monday, reflecting industry confidence in the new administration’s pro-energy policies.

As part of his efforts to increase US LNG exports, Trump, after taking charge, issued an executive order lifting the Department of Energy’s pause on licenses for exporting super-chilled gas to countries without free trade agreements with the United States.

The United States is already the largest exporter of LNG in the world and is expected to double its capacity by 2028, according to the U.S. Energy Information Agency.

The US, already the world’s largest LNG exporter, is projected to double its export capacity by 2028, according to the US Energy Information Administration.

“This deal will not only increase the supply of energy to Bangladesh but also will boost our strategic partnership with the US,” Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (BIDA), told Reuters.

This development comes when Bangladesh seeks alternatives for a long-term solution to meet its energy demand after the disruption of the supply chain following the Russia-Ukraine war that began in 2022.