Excelerate Energy Inc. signed a long-term LNG sale and purchase agreement (SPA) with Bangladesh Oil, Gas & Mineral Corp. (PetroBangla), according to an Nov. 8 press release.

Under the SPA, PetroBangla has agreed to purchase 0.85 million tonnes per annum (mtpa) to 1 mtpa of LNG from Excelerate for a 15-year term beginning January 2026, according to the press release. Excelerate will deliver 0.85 mtpa of LNG in 2026 and 2027 and 1 mtpa of LNG from 2028 to 2040.

“Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy,” said Steven Kobos, Excelerate’s president and CEO. “Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders.”

The long-term SPA represents the next phase of Excelerate’s plan to integrate its business in Bangladesh. According to Excelerate, they introduced LNG to Bangladesh’s market in 2018 with the development of its integrated Moheshkhali LNG floating storage and regasification unit (FSRU) terminal.

Since then, the company deployed a second FSRU terminal to the Bay of Bengal and has utilized its infrastructure position to push LNG cargos sales into Bangladesh. Their two FSRUs in Bangladesh deliver approximately 25% of the country's natural gas supply.

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