State-owned Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) has canceled its talks with the Swiss trading company Trafigura regarding the development of an LNG import terminal. 

The company, however, has continued its talks with Trafigura’s compatriot Gunvor on a separate project.

Speaking to Reuters a director at Petrobangla’s LNG division said that Trafigura delayed its agreement to supply LNG to Chittagong Urea Fertilizer which was the reason for talks cancelation.

Bangladesh, that is rapidly developing its LNG importing capacity which is expected to reach 17.5 mtpa by 2025, held talks with three Swiss trading companies, namely, Trafigura, Vitol and Gunvor.

Unlike Trafigura, Gunvor is progressing with the development of its LNG import project in Bangladesh and has signed a deal with Belgium’s Exmar, the Nicolas Savery-led shipowner, to charter its barge-based FSRU for a ten-year term.

The FSRU barge is expected to arrive in Bangladesh in the fourth quarter of this year and start operations after its full commissioning.

The state-owned Petrobangla also expanded its LNG supply deals by securing 1 million tons of LNG per year in an agreement with Oman Trading International.

In September 2017, Petrobangla and Qatargas signed an SPA for the supply of up to 2.5 million tons of LNG per annum for 15 years.

LNG World News Staff