Bangladesh’s cabinet purchase committee has approved a 13-year deal to import 117 LNG cargoes from US-based Gunvor USA LLC at revised higher prices, advancing the reciprocal trade pact’s energy commitments amid global supply shocks.

Bangladesh is set to import 117 cargoes of liquefied natural gas from Texas-based Gunvor USA LLC between 2026 and 2038 under a government-to-government arrangement, after the Cabinet Committee on Government Purchase gave final approval last week. The decision marks a concrete step in fulfilling energy-related pledges made under the reciprocal trade agreement signed with the United States earlier this year, even as questions linger over pricing and the structure of the deal itself.

Finance Minister Amir Khosru Mahmud Chowdhury chaired the meeting that cleared the long-term purchase proposal submitted by Petrobangla. Officials described the arrangement as part of broader efforts to reduce the trade deficit with the United States and secure more predictable supplies at a time when traditional Middle Eastern sources face severe disruption.

Critics have labelled the final package “jacked-up” relative to the company’s opening offer, particularly for the early years when Asian spot prices remain elevated. Supporters argue that locking in volumes now provides a hedge against further volatility and that the later switch to a Henry Hub-linked formula should prove more competitive once global liquefaction capacity expands.

Trade Pact Context and Supply Urgency

The Gunvor contract forms part of Bangladesh’s commitment, made under the February 2026 Agreement on Reciprocal Trade, to purchase roughly $15 billion worth of US energy products, including LNG, over 15 years. The interim government signed the pact shortly before leaving office, seeking both tariff relief on Bangladeshi exports and greater energy security.

That security has become more urgent since the escalation of the US-Israeli conflict with Iran. QatarEnergy, one of Bangladesh’s main long-term suppliers, declared force majeure on some deliveries. Spot prices that hovered near $10 per MMBtu in January briefly spiked above $28. Domestic gas production continues its long-term decline, leaving the power and industrial sectors increasingly dependent on imported LNG.

Petrobangla has already been forced to turn repeatedly to the spot market and short-term direct purchases. On the same day the long-term Gunvor deal was approved, the committee also cleared six additional cargoes from other suppliers – two each from UK-based Blackcube International, Oman’s Maxwell International and Hong Kong’s Zhenyu Shipping – at prices ranging from $14.95 fixed to JKM-linked terms. Earlier the Cabinet Committee on Economic Affairs had given in-principle clearance for further emergency cargoes.

Questions Over Structure and Risk

The decision to frame the Gunvor purchase as a government-to-government arrangement has drawn scrutiny. Gunvor USA LLC is a privately owned commercial entity, not a state company. Committee members did not publicly clarify how the G-to-G designation applies in this case. Energy Minister Iqbal Hassan Mahmood Tuku had earlier indicated that performance of initial cargoes would be evaluated before any full long-term commitment was locked in, though the final approval now covers the entire 13-year span.

Analysts note that concentrating additional long-term volumes with a single US supplier deepens reliance on one geographic corridor even as it diversifies away from the Gulf. The dual-index pricing structure attempts to balance near-term Asian market realities with the expectation that US Gulf Coast gas will remain relatively competitive in the 2030s. Whether the formula ultimately delivers value will depend on the future path of both JKM and Henry Hub prices, shipping costs, and the utilisation rate of Bangladesh’s floating storage and regasification units.

Broader Energy Outlook

Bangladesh’s annual LNG import requirement continues to climb as domestic fields deplete. Officials project the need for well over 100 cargoes a year in the coming seasons simply to keep power plants and fertiliser factories running. Long-term contracts already exist with QatarEnergy, OQ Trading of Oman and Excelerate Energy of the United States. The Gunvor volumes add another substantial tranche under the reciprocal trade framework.

The government simultaneously continues to approve fertiliser and other commodity imports to support agriculture and food security. Last week’s meeting also cleared purchases of urea, DAP, TSP, rice, sugar, soybean oil and lentils, underscoring the breadth of immediate import needs.

For households and industries already absorbing higher gas tariffs and frequent load management, the practical test of the new deal will be whether cargoes arrive on schedule and at prices that keep subsidy bills manageable. The first five Gunvor cargoes are expected this year, offering an early indicator of delivery reliability.