Bangladesh in Talks with Saudi Aramco Over LNG Supply MOU

Bangladesh’s interim government is negotiating a memorandum of understanding (MOU) with Saudi Aramco to expand cooperation in the energy sector, including imports of liquefied natural gas (LNG), according to officials on August 28.

Rezanur Rahman, chairman of Bangladesh Petroleum Corporation (BPC), confirmed that a draft agreement has been prepared and is currently under review by the Ministry of Law, Justice and Parliamentary Affairs. “We plan to sign the MOU with Aramco soon to accelerate bilateral cooperation in the energy sector,” Rahman said.

Aramco Eyes Entry into Bangladesh’s LNG Supply Chain 

As part of its broader push to expand global trading, Saudi Aramco has expressed interest in supplying LNG to Bangladesh through both long-term and short-term agreements. Its trading arm, Aramco Trading Company, is already on the shortlist of potential spot LNG suppliers and has delivered multiple spot cargoes via competitive tenders. 

Sources indicated Aramco is likely to start with short-term sales and purchase agreements (SPAs). If finalized, it would mark Aramco’s formal entry into Bangladesh’s LNG supply chain, strengthening Dhaka’s supply diversification.

Context: A Growing Appetite for LNG

Bangladesh recently signed its first short-term LNG supply deal with Oman’s OQ Trading, covering 17 cargoes between August 2025 and December 2026. The first shipment has already been delivered. Notably, the deal introduced a new JKM-linked pricing formula (Japan-Korea Marker + $0.15/MMBtu premium), signaling a shift toward more flexible, market-based pricing. While details of Aramco’s proposed contract remain under discussion, BPC officials suggested a similar JKM-linked mechanism could be used.

Currently, Bangladesh relies heavily on long-term supply contracts with QatarEnergy LNG and Oman OQ, which provide baseline security but lack flexibility. Shorter-term agreements offer greater cost competitiveness and adaptability, particularly as the country bridges the gap until new long-term contracts can be secured.

Supply Gap Driving Urgency

As of August 27, Bangladesh’s total natural gas supply stood at 2.83 billion cubic feet per day, well short of demand, which exceeds 4.0 bcf/d. The gap underscores Dhaka’s urgent need to secure additional LNG imports to stabilize its energy system and avoid prolonged power shortages.

Bottom line: A potential LNG supply deal with Aramco would not only diversify Bangladesh’s energy sources but also mark a strategic milestone for Saudi Aramco’s growing global LNG portfolio.