Summary:
- Argent LNG has signed a non-binding deal to supply Bangladesh with up to 5 million metric tons of LNG annually from its upcoming Louisiana facility.
- This is the first major U.S. LNG agreement under President Donald Trump’s administration, reflecting confidence in his pro-energy policies.
- The deal aims to meet Bangladesh’s growing industrial energy demands while strengthening its strategic partnership with the United States.
- Rising global LNG prices remain a challenge for Bangladesh, which previously reverted to coal during price spikes in 2022.
Bangladesh has entered into a significant non-binding agreement with Louisiana-based Argent LNG to purchase up to 5 million metric tons of liquefied natural gas (LNG) annually. The deal, announced on January 24, 2025, represents the first major U.S. LNG supply agreement since President Donald Trump assumed office earlier this week. This milestone reflects growing confidence in the Trump administration’s pro-energy policies, which include lifting restrictions on LNG exports to countries without free trade agreements with the United States.
Argent LNG is currently developing a state-of-the-art facility in Port Fourchon, Louisiana, with an annual production capacity of 25 million metric tons. Once operational, the facility will supply LNG to Petrobangla, Bangladesh’s state-owned energy company, under the terms of the agreement. The project is expected to bolster U.S. LNG exports, which are projected to double by 2028, solidifying the United States’ position as the world’s largest exporter of LNG.
Ashik Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority (BIDA), emphasized the strategic importance of this partnership. “This agreement not only ensures a reliable energy supply for Bangladesh’s expanding industrial base but also strengthens our strategic partnership with the United States,” Chowdhury stated. He highlighted that securing a steady LNG supply is critical for supporting Bangladesh’s growing industrial demands and reducing its dependence on traditional energy sources.
Bangladesh has been actively seeking long-term solutions to address its rising energy needs amidst rapid industrialization. The country has increasingly turned to LNG as a cleaner alternative to coal and other fossil fuels. However, price sensitivity remains a key concern. In 2022, global LNG prices surged following Russia’s invasion of Ukraine, prompting Bangladesh to temporarily revert to coal-based energy due to cost considerations.
The agreement also aligns with broader geopolitical and economic trends. By fostering closer ties with the United States, Bangladesh diversifies its energy partnerships beyond traditional suppliers in the Middle East. For the U.S., this deal underscores its commitment to expanding global energy markets under Trump’s “America First” policy framework.
Port Fourchon, where Argent LNG is constructing its facility, is strategically located as a key hub for energy exports. The development is expected to bring significant economic benefits to Louisiana while advancing global energy security.
This landmark deal marks a pivotal step for both nations: it provides Bangladesh with a reliable energy source to fuel its economic growth and reinforces the United States’ leadership in the global LNG market.
Source: Reuters
