Qatar Petroleum has agreed to sell liquefied natural gas (LNG) worth between $1-$1.5 billion to Bangladesh to help the South Asian country meet its fast-growing energy demand, a senior official said on Sunday.

'They assured to make the LNG available for us to buy and also wished to enter into a long-term contract,' said Mohammad Muqtadir Ali, chief of Bangladesh's newly-formed LNG cell.

The import would be equivalent to a daily natural gas supply of 500 million cubic feet (mmcf), Muqtadir said, adding that the supplier will send a team to Dhaka soon to finalise price and other details.

Bangladesh's gas supply stands at 2,000 mmcf a day while demand is at 2,300 mmcf and could rise above 2,500 mmcf, Muqtadir said.

He said that LNG imports would also help the country boost power generation. Bangladesh's power plants have the capacity to produce up to 5,500 megawatts (MW) of electricity, but produce only 3,900 MW, against daily demand of up to 6,000 MW, due to the gas shortage, officials said.   

Bangladesh Oil, Gas and Mineral Corporation, or Petrobangla, supplies 850 mmcf gas daily to Bangladesh Power Development Board.   

'Petrobangla will be able to supply another 200 mmcf gas each day after importing LNG for electricity generation,' said Muqtadir, who was previously the chairman of Petrobangla.   

The government has asked US-based Excelerate to complete a study to find out a site for an LNG terminal and to determine the cost. Petrobangla is also discussing with the Asian Development Bank to fund the LNG project. - Reuters