What is in Bangladesh’s energy agreement with the US?

Various discussions are underway after the signing of a Memorandum of Understanding (MoU) between Bangladesh and the US for strategic cooperation in the energy sector.

Especially after Bangladesh agreed to buy $15 billion or 15 billion in energy from the US over 15 years in the trade agreement signed between the two countries during the interim government a few months ago, there is curiosity about why a new energy sector agreement is now being signed.

After the signing of the MoU, the Bangladesh Embassy in Washington issued a statement on 'diversifying fuel sources' and 'opening up new areas of greater energy cooperation' between Bangladesh and the US.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said that the main purpose of this MoU is to ensure Bangladesh's energy security, especially for LPG and LNG.

The State Minister said that ensuring energy security is of particular importance in the interest of the country. We have agreements with many other countries. Now with the United States as well. This will play an important role in protecting the country's interests.

Analysts say that the signing of the MoU between the two countries will further expand the activities of American companies in the energy sector of Bangladesh and create an alternative source of energy import for Bangladesh, which will play a role in reducing dependence on the Middle East for energy during the crisis.

Although Bangladesh is heavily dependent on the Middle East, especially Qatar and Saudi Arabia, for energy, this time after the Iran war, they did not supply oil and LNG to Bangladesh as per the agreement.

Energy expert and former advisor to the caretaker government, Professor Tamim, says that diversifying energy sources and creating another place to import through an agreement with the United States is good for Bangladesh.

He said, what we need now is that we can import from the United States. However, if Bangladesh is forced to buy energy in the name of an agreement or agreement, it will not be good for the country. These issues will be understood only when the details of the agreement are revealed.

What is in the agreement?

According to a notification from the Bangladesh Embassy in Washington, the MoU was signed in Washington on Thursday (May 14) local time. The signing was made by Bangladesh Foreign Minister Khalilur Rahman and US Energy Secretary Chris Wright.

The notification said that this MoU will contribute to Bangladesh's efforts to strengthen long-term energy security by diversifying energy sources.

The notification further said that in addition to ensuring affordable and sustainable supply systems, it will open up new areas of greater energy cooperation between Bangladesh and the US.

It also informed that under this agreement, capacity building, knowledge and skill exchange and research in oil, gas, geothermal and bioenergy between the two countries will be facilitated.

Along with this, it will be helpful in Bangladesh's import of LNG, LPG and other energy products from the US at affordable prices.

Energy Regulatory Commission Chairman Jalal Ahmed said that having alternative sources is important for energy security, because dependence on a single source is risky for the country.

Professor M Tamim, however, says that if the government publishes the details of the agreement, it will be known what kind of cooperation has been promised in which sectors.

He said, apparently, it has been said to diversify the sources of energy. Bangladesh has to import energy. Therefore, the more sources there are, the better. It is good for us to have alternative places of import, so that if necessary, we can import from there.

Why the agreement even after the agreement

The trade agreement that the interim government signed with the United States before the parliamentary elections in February this year, which was criticized by many, stipulates the purchase of energy worth 15 billion dollars from the United States over the next 15 years.

In addition, American companies already have a dominant position in Bangladesh's gas sector. In addition, several American companies have expressed interest in exploring for oil and gas in all blocks in the deep sea.

However, gas exploration in deep sea areas has been almost stagnant for a long time. Bangladesh's maritime boundary is divided into 15 deep sea blocks and 11 shallow sea blocks.

An official of the Bangladesh Energy Regulatory Commission (BERC) said that 40 percent of the LPG Bangladesh imported in April this year came from the United States.

Earlier, in January 2025, the interim government of Professor Muhammad Yunus signed an agreement to import LNG from the United States. At that time, there was also discussion in political and diplomatic circles that the United States was under pressure to make that agreement.

Molla Amjad Hossain, editor of the energy magazine Energy and Power, said that the United States is a major player in Bangladesh's energy sector and they want to further consolidate their position in the future.

He also said that 40 percent of the gas fields from which Bangladesh extracts gas are operated by the American company Chevron. An American company operates an LNG terminal. Another American company has offered to explore for oil and gas in all the blocks in the deep sea. Their participation in LPG supply is increasing.

In addition, according to the agreement reached during the interim government in February of this year, liquefied natural gas from the United States