The natural gas industry is under increasing pressure to reduce emissions in the fight against climate change.
Qatar Petroleum has signed a long-term agreement with Vitol, under which it would supply 1.25 million tonnes of liquefied natural gas annually to Vitol customers in Bangladesh.
Under the agreement, LNG deliveries will start later this year, QP said in a statement on Monday.
Qatar’s Energy Minister and CEO of Qatar Petroleum Saad bin Sherida Al Kaabi welcomed the agreement.
“We are pleased to sign this SPA (Sale and Purchase Agreement) with Vitol, and we look forward to commencing deliveries under the SPA to further contribute to meeting Bangladesh’s energy requirements.
“This SPA also highlights our strong ability to meet the requirements of our partners and customers. We are proud to continue to be the supplier of choice for our customers and partners around the globe,” Al Kaabi added.
Vitol is a Dutch energy and logistics giant, which has grown into the world’s largest independent oil trader, with annual revenues comparable to Apple.
In 2019, the company handled more than 8 million barrels of crude oil and petroleum products a day, according to Bloomberg. To meet global demand for cleaner energy sources, Vitol has been beefing up its natural gas and electricity trading.
Bangladesh, with a population of 163 million, is expected to become a major LNG importer in Asia, along with Pakistan and India, as domestic gas supplies fall.
The country currently has two floating storage and regasification units (FSRUs) with a total regasification capacity of 28 million cubic metres (1 billion cubic feet) per day – equal to about 7.5 million tonnes a year.
Bangladesh imported 3.89 million tonnes of LNG in 2019 – through two long-term contracts with Oman Trading International and Qatargas, Reuters reported.