BD seeks US LPG, DFC backing

Bangladesh has stepped up diplomatic efforts to secure long-term liquefied petroleum gas (LPG) supplies from the United States and gain access to financing from the US International Development Finance Corporation (DFC), as the two countries seek to deepen cooperation in energy, infrastructure and investment, sources said.
The initiative was discussed during a high-level meeting between the Economic Minister at the Bangladesh Embassy in Washington and Laura Anderson, Senior Economic Adviser at the US Department of State, in June.
During the meeting, Bangladesh sought the US government's support in encouraging American energy companies to participate in the country's initiative to establish long-term LPG supply arrangements.
The Energy and Mineral Resources Division (EMRD) has already invited 10 US companies to submit expressions of interest (EOIs) for supplying LPG to Bangladesh as part of the government's strategy to diversify energy sources and strengthen fuel security, according to officials familiar with the meeting.
The Economic Minister urged the U.S. administration to engage actively with the invited companies and encourage them to respond positively to Bangladesh's proposal.

Responding to the request, Ms Anderson said the US Department of State, the Department of Energy and the Department of Commerce were jointly coordinating the matter and would soon approach prospective LPG suppliers to facilitate their participation.
She requested the Bangladesh Embassy to share the list of invited companies so that the relevant US agencies could begin follow-up discussions.
Officials at the Ministry of Commerce and the EMRD described the development as a significant indication of growing US government support for Bangladesh's efforts to expand bilateral energy cooperation and attract greater participation by American private-sector companies.
The meeting also focused on Bangladesh's long-standing efforts to become eligible for financing from the US International Development Finance Corporation (DFC), which provides loans, guarantees and political risk insurance for strategic infrastructure and private-sector investments in developing countries.
According to the official communication, Ms Anderson expressed optimism that Bangladesh could become eligible for DFC financing in the near future.
She advised Bangladesh to continue raising the issue in all bilateral engagements with the United States while simultaneously identifying a portfolio of priority projects that could be presented to potential US investors once eligibility is secured.
When contacted, a senior official of the Bangladesh Investment Development Authority (BIDA), speaking on condition of anonymity, said access to DFC financing could significantly strengthen Bangladesh's ability to mobilise long-term foreign investment for infrastructure, energy and industrial development projects.
The two sides also discussed ways to deepen business-to-business (B2B) engagement between the two countries.
Referring to the Bangladeshi business delegation that visited the United States with the support of the US Embassy in Dhaka in May, both sides agreed that future trade missions should be organised on a sector-specific basis to generate more tangible commercial outcomes.
They also agreed to jointly identify priority sectors for future Bangladeshi business delegations to the United States.
In another significant development, the US side conveyed the interest of both the US government and American companies in participating in Bangladesh's upcoming bidding processes for two major energy infrastructure projects-the Floating Storage and Regasification Unit (FSRU) and the second refinery project of Eastern Refinery Limited (ERL-2).
The Economic Minister assured the US official that the matter would be conveyed to the Energy and Mineral Resources Division for necessary follow-up.
Following the meeting, the Bangladesh mission recommended a series of immediate actions, including sharing the list of prospective US LPG suppliers with the relevant US agencies, pursuing DFC eligibility
through continued bilateral engagement, preparing a portfolio of priority projects suitable for DFC financing, identifying priority sectors for future business delegations, and keeping the US government informed about bidding opportunities for the FSRU and ERL-2 projects.
Officials believe the latest engagement reflects a broader effort by both Dhaka and Washington to strengthen cooperation in energy security, strategic investment and commercial partnerships amid Bangladesh's growing demand for cleaner fuels and large-scale infrastructure financing.
They also noted that the initiative marks Bangladesh's first major government-backed effort to secure long-term LPG supplies from the United States.
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