The U.S.-based company Argent LNG has signed a significant non-binding agreement with the Bangladeshi government to supply 5 million tons of liquefied natural gas (LNG) annually to Petrobangla, the state-owned energy corporation. This was confirmed by the Bangladesh Investment Development Authority (BIDA), with Argent LNG also issuing a statement on the matter, as reported by Reuters.

Argent LNG is developing infrastructure in Port Fourchon, Louisiana, with an annual capacity of 25 million metric tons (MMTPA) of LNG. Once operational, this facility will enable LNG deliveries to Petrobangla under the terms of the agreement.

BIDA's Executive Chairman, Ashiq Chowdhury, highlighted that the deal not only ensures a reliable energy supply for Bangladesh’s industries but also strengthens strategic ties with the United States. Reuters also noted that this is the first major LNG supply deal since Donald Trump assumed the U.S. presidency. Shortly after taking office, Trump signed an executive order lifting restrictions on LNG export licenses to non-free trade agreement countries, aiming to boost U.S. LNG exports.

The U.S., already the world’s largest LNG exporter according to the Energy Information Administration, expects to double its export capacity by 2028. Meanwhile, Bangladesh seeks a long-term energy solution and is working to increase LNG usage. However, the rising LNG prices caused by the 2022 Russia-Ukraine war led Bangladesh to temporarily shift towards cheaper coal-based energy sources.