Sonatrach Explores South Asian Market Entry via Bangladesh LNG

Algeria and Bangladesh are actively exploring the possibility of a liquefied natural gas (LNG) supply agreement, which could include up to ten annual shipments. This potential accord aligns with Bangladesh's objectives to diversify its energy sources and secure its supply needs amid global energy market disruptions. Initial discussions between the two nations highlight a mutual interest in fostering long-term energy cooperation.

Diplomatic engagements have progressed significantly, with officials from both countries holding recent high-level meetings. Bangladesh's Minister of Energy and Mineral Resources, Iqbal Hasan Mahmud, met with Algeria's Ambassador to Dhaka, Abdelwahab Saidani, to discuss cooperation across the energy sector, including LNG and liquefied petroleum gas (LPG) supply. These discussions also covered the potential for signing memorandums of understanding on gas and laid groundwork for an anticipated visit by Bangladeshi Prime Minister Tariq Rahman to Algeria, signaling a broader effort to enhance bilateral relations and expand trade. Earlier, in September 2026, Algerian Minister of Hydrocarbons Mohamed Arkab and his Bangladeshi counterpart participated in a video conference to explore partnership opportunities in energy supply and commercial cooperation, attended by Sonatrach General Manager Noureddine Daoudi and other energy sector officials.

For Algeria, this potential agreement offers a strategic opportunity for Sonatrach to broaden its reach into new markets within South Asia, an important step given the company's predominant focus on European gas exports. Furthermore, Algeria presents a significant logistical advantage for supplying Asian markets, as shipments from its ports can reach the region without traversing the Strait of Hormuz. While negotiations remain in their preliminary stages, focusing on the economic and commercial viability, including pricing, shipping costs, gas quantities, and delivery schedules, the discussions underscore Algeria's ongoing commitment to strengthening its position as a key global energy supplier.