The two state-run energy companies, Bangladeshi Petrobangla and Indonesian Pertamina, signed an agreement on Sunday to discuss LNG import in Bangladesh, as the South Asian country turns to LNG seeking to fill a shortfall of domestic natural gas.
The letter of intent was inked on the sidelines of a meeting between Prime Minister Sheikh Hasina and Indonesian President Joko Widodo, who arrived in Dhaka on Saturday, Reuters reported.
The South Asian country with more than 160 million people may import as much as 17.5 million tonnes of LNG per year by 2025, as its demand for domestic gas grows.
This deal comes several months after Petrobangla informed that it was in discussions to import more than 1 million tonnes of LNG from Pertamina as early as 2018.
To tackle the shortfall of domestic natural gas, the country singed its first LNG import agreement with Qatar in September.
Petrobangla is also finalising several floating storage and regasification units (FSRUs), with the first expected to start operations in April 2018.
