BIDA clarifies LNG deal with US firm
“Signing a non-binding HOA that outlines key terms but leaves room for negotiation is the first step in a process," says BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun in a statement
The government has provided a clarification about the heads of agreement (HOA) signed with US-based Argent LNG for the potential import of up to 5 million tonnes of liquefied natural gas (LNG) for 20 years.
Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Chowdhury Ashik Mahmud Bin Harun, in a statement today (26 January), said, "Signing a non-binding HOA that outlines key terms but leaves room for negotiation is the first step in a process."
He said any future binding agreement would adhere to Bangladesh's legal framework, including the Public Procurement Act, 2006, the Public Procurement Rules, 2008, and the Foreign Private Investment (Promotion and Protection) Act, 1980.
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The agreement was finalised on Friday (24 January) at the Bangladesh Embassy in Washington, DC.
Argent LNG is currently developing a 25 million metric tonnes per annum (MTPA) LNG facility in Louisiana, US.
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 US Energy Information Agency.
If the Argent LNG project in Port Fourchon is completed, its cargoes could be sold to Bangladesh's state-owned company Petrobangla, according to the agreement.
The HOA is a non-binding agreement, which means it does not obligate either party to finalise the terms stated in the document.
