Latest news with #OQTrading
Zawya
24-07-2025
- Business
- Zawya
Oman: OQ Trading expands LNG supply role in Bangladesh
MUSCAT: OQ Trading International, the energy trading arm of Oman's OQ Group, has strengthened its position in Bangladesh's energy market with the signing of the country's first-ever short-term liquefied natural gas (LNG) supply agreement. The landmark deal marks a strategic shift in Bangladesh's LNG sourcing approach, aimed at ensuring greater energy security and reducing exposure to the volatile spot market. According to Rupantarita Prakritik Gas Company Ltd (RPGCL), the agreement represents a critical step in enhancing supply stability during peak demand periods. RPGCL, a fully owned subsidiary of Petrobangla and the government's LNG importing agency, is the official partner of OQ Trading in Bangladesh. The newly signed Sales and Purchase Agreement (SPA) allows Bangladesh to import one LNG cargo per month from August 2025 through December 2026, totalling 17 cargoes. This deal marks Bangladesh's first short-term LNG arrangement with any global supplier and complements its existing long-term contracts. Under the agreement, Bangladesh will receive five LNG cargoes in 2025 and 12 in 2026. The SPA also introduces a new pricing mechanism, shifting from the traditional Brent crude-linked pricing model to one based on the Japan Korea Marker (JKM), which is widely used for LNG deliveries to Northeast Asia. The country will pay a premium of 15 cents per MMBtu above the JKM benchmark, offering an alternative structure to previous negotiations where suppliers demanded up to 17 per cent of Brent plus fixed charges. OQ Trading has long been a key LNG supplier to Bangladesh. Its first long-term agreement, signed in 2018, remains in effect through 2029, providing up to 1.5 million tonnes of LNG per year. A second long-term contract, signed in 2023, will run from 2026 to 2035. Under this contract, Bangladesh is set to import 250,000 tonnes of LNG in 2026, 1 million tonnes in both 2027 and 2028 and 1.5 million tonnes annually from 2029 onwards. As of June 2025, Bangladesh has imported 124 LNG cargoes from OQ Trading, totalling around 7.74 million tonnes. The latest short-term deal is designed to reduce Bangladesh's dependency on high-priced spot cargoes, which are frequently used to meet surges in demand — especially in summer and during Ramadhan. Spot market offers often come with hefty premiums due to long validity periods and perceived payment risks, with mark-ups sometimes exceeding $1.50 per MMBtu over JKM. This strip contract with OQ Trading provides Bangladesh with a fixed premium pricing structure and shields the supplier from market risks associated with fluctuating prices and tender uncertainties. It also offers much-needed breathing room ahead of increased deliveries under future long-term supply deals. Bangladesh is projected to import around 52 spot cargoes in 2025 — the highest volume for any single year. The agreement with OQ Trading is expected to ease that pressure by securing a portion of supply under predictable pricing terms. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
23-07-2025
- Business
- Observer
OQ Trading expands LNG supply role in Bangladesh
MUSCAT: OQ Trading International, the energy trading arm of Oman's OQ Group, has strengthened its position in Bangladesh's energy market with the signing of the country's first-ever short-term liquefied natural gas (LNG) supply agreement. The landmark deal marks a strategic shift in Bangladesh's LNG sourcing approach, aimed at ensuring greater energy security and reducing exposure to the volatile spot market. According to Rupantarita Prakritik Gas Company Ltd (RPGCL), the agreement represents a critical step in enhancing supply stability during peak demand periods. RPGCL, a fully owned subsidiary of Petrobangla and the government's LNG importing agency, is the official partner of OQ Trading in Bangladesh. The newly signed Sales and Purchase Agreement (SPA) allows Bangladesh to import one LNG cargo per month from August 2025 through December 2026, totalling 17 cargoes. This deal marks Bangladesh's first short-term LNG arrangement with any global supplier and complements its existing long-term contracts. Under the agreement, Bangladesh will receive five LNG cargoes in 2025 and 12 in 2026. The SPA also introduces a new pricing mechanism, shifting from the traditional Brent crude-linked pricing model to one based on the Japan Korea Marker (JKM), which is widely used for LNG deliveries to Northeast Asia. The country will pay a premium of 15 cents per MMBtu above the JKM benchmark, offering an alternative structure to previous negotiations where suppliers demanded up to 17 per cent of Brent plus fixed charges. OQ Trading has long been a key LNG supplier to Bangladesh. Its first long-term agreement, signed in 2018, remains in effect through 2029, providing up to 1.5 million tonnes of LNG per year. A second long-term contract, signed in 2023, will run from 2026 to 2035. Under this contract, Bangladesh is set to import 250,000 tonnes of LNG in 2026, 1 million tonnes in both 2027 and 2028 and 1.5 million tonnes annually from 2029 onwards. As of June 2025, Bangladesh has imported 124 LNG cargoes from OQ Trading, totalling around 7.74 million tonnes. The latest short-term deal is designed to reduce Bangladesh's dependency on high-priced spot cargoes, which are frequently used to meet surges in demand — especially in summer and during Ramadhan. Spot market offers often come with hefty premiums due to long validity periods and perceived payment risks, with mark-ups sometimes exceeding $1.50 per MMBtu over JKM. This strip contract with OQ Trading provides Bangladesh with a fixed premium pricing structure and shields the supplier from market risks associated with fluctuating prices and tender uncertainties. It also offers much-needed breathing room ahead of increased deliveries under future long-term supply deals. Bangladesh is projected to import around 52 spot cargoes in 2025 — the highest volume for any single year. The agreement with OQ Trading is expected to ease that pressure by securing a portion of supply under predictable pricing terms.
Zawya
10-06-2025
- Business
- Zawya
Oman: be'ah, OQ sign deal for biogas project
Muscat – Oman Environmental Services Holding Company (be'ah) and OQ Trading have signed a cooperation agreement to develop a national project focused on producing biogas (biomethane) and bio-carbon dioxide by processing organic waste from landfills and future biofacilities managed by be'ah. This collaboration aims to turn environmental challenges into promising economic opportunities by utilising approximately 20mn cubic metres of biogas extracted from these sites – comprising around 40% biomethane (a renewable fuel) and 60% bio-CO₂ for sustainable industrial applications. The agreement sets out a roadmap for conducting technical and economic feasibility studies, infrastructure assessments, and exploring commercial marketing opportunities for the project's outputs. It also aims to create attractive local investment prospects aligned with the goals of Oman Vision 2040. Both companies highlighted that this partnership represents an integrated national collaboration between the energy and environmental sectors. It combines be'ah's expertise in waste and resource management with OQ Trading's global energy capabilities to reinforce Oman's position as a regional hub for clean energy. Eng Tariq Ali al Amri, CEO of be'ah, stated that the project marks a new milestone in energy recovery from organic waste through sustainable methods – converting environmental challenges into developmental and economic opportunities. He noted that biogas and bio-CO₂ production would reduce emissions, support Oman's net-zero goals, enhance waste management efficiency, and provide alternative energy sources. Said Talib al Maawali, Executive Director for the Middle East at OQ Trading, described the project as an attractive opportunity to diversify Oman's energy mix in line with the 2050 carbon neutrality targets and global trends towards sustainable, low-carbon energy solutions. He regarded the initiative as a strategic nucleus that will stimulate further investment in waste-to-energy initiatives and strengthen clean energy value chains.
Muscat Daily
09-06-2025
- Business
- Muscat Daily
be'ah, OQ sign deal for biogas project
Muscat – Oman Environmental Services Holding Company (be'ah) and OQ Trading have signed a cooperation agreement to develop a national project focused on producing biogas (biomethane) and bio-carbon dioxide by processing organic waste from landfills and future biofacilities managed by be'ah. This collaboration aims to turn environmental challenges into promising economic opportunities by utilising approximately 20mn cubic metres of biogas extracted from these sites – comprising around 40% biomethane (a renewable fuel) and 60% bio-CO₂ for sustainable industrial applications. The agreement sets out a roadmap for conducting technical and economic feasibility studies, infrastructure assessments, and exploring commercial marketing opportunities for the project's outputs. It also aims to create attractive local investment prospects aligned with the goals of Oman Vision 2040. Both companies highlighted that this partnership represents an integrated national collaboration between the energy and environmental sectors. It combines be'ah's expertise in waste and resource management with OQ Trading's global energy capabilities to reinforce Oman's position as a regional hub for clean energy. Eng Tariq Ali al Amri, CEO of be'ah, stated that the project marks a new milestone in energy recovery from organic waste through sustainable methods – converting environmental challenges into developmental and economic opportunities. He noted that biogas and bio-CO₂ production would reduce emissions, support Oman's net-zero goals, enhance waste management efficiency, and provide alternative energy sources. Said Talib al Maawali, Executive Director for the Middle East at OQ Trading, described the project as an attractive opportunity to diversify Oman's energy mix in line with the 2050 carbon neutrality targets and global trends towards sustainable, low-carbon energy solutions. He regarded the initiative as a strategic nucleus that will stimulate further investment in waste-to-energy initiatives and strengthen clean energy value chains. ONA
Zawya
05-06-2025
- Business
- Zawya
Oman: Pact inked to develop biogas project from organic waste
Muscat – Oman Environmental Services Holding Company (be'ah) and OQ Trading have signed a cooperation agreement to jointly develop a national project focused on the production of biogas (biomethane) and bio-carbon dioxide from organic waste at landfills and future biofacilities managed by be'ah. The strategic partnership aims to transform environmental challenges into promising economic opportunities by harnessing approximately 20 million cubic metres of biogas extracted from be'ah-managed sites. The biogas is expected to comprise about 40% biomethane – a renewable fuel – and 60% bio-CO₂, both of which can be used in various sustainable industrial applications. Under the agreement, the two entities will work on a roadmap that includes technical and economic feasibility studies, infrastructure assessments, and identification of commercial marketing opportunities for the project's outputs. The initiative is expected to create local investment opportunities in line with the goals of Oman Vision 2040. Both companies affirmed that the collaboration represents an integrated model of national cooperation between the energy and environmental sectors. It brings together be'ah's expertise in waste and resource management with OQ Trading's global energy capabilities, strengthening Oman's position as a regional clean energy hub. Engineer Tariq Ali Al Amri, CEO of be'ah, described the project as a new milestone in energy recovery from organic waste through sustainable technologies. 'This initiative demonstrates how environmental challenges can be turned into developmental and economic opportunities. The production of biogas and bio-CO₂ will contribute to reducing emissions, improving waste management efficiency, and providing alternative energy sources,' he said. Said Talib Al Maawali, Executive Director for the Middle East at OQ Trading, called the project an attractive opportunity to diversify Oman's energy mix in support of the sultanate's carbon neutrality goals by 2050. 'This is a strategic nucleus for future waste-to-energy projects and will enhance clean energy value chains across the country,' he added. The project reflects Oman's broader commitment to sustainable development and low-carbon energy solutions in line with global trends and national objectives. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
