HOUSTON (Reuters) - Argent LNG, which is developing a 25 million metric tonnes per annum (MTPA) LNG facility in Louisiana, has signed a non-binding agreement with the government of Bangladesh to purchase up to 5 million metric tons of liquefied natural gas (LNG) annually, the company said in a statement on Friday.
This is the first major U.S. LNG supply deal since President Donald Trump took office on Monday, and according to the parties, reflects industry confidence in the new administration's pro-energy policies.
Since coming to power Trump has taken executive action to end the Department of Energy's pause on licenses to export the super-chilled gas to countries that do not have free trade agreements with the United States, as he tries to increase U.S. exports of LNG. 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.
If the Argent LNG project in Port Fourchon is completed, its cargoes could be sold to Petrobangla, a Bangladesh state-owned company, according to the agreement.
"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," said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority.
Bangladesh has been seeking long-term solutions to its energy demands and has been trying to move toward increased use of LNG. But the country is also price sensitive and in 2022, as LNG prices spiked due to Russia's invasion of Ukraine, it reverted to burning cheaper coal.