The government has signed a heads of agreement (HOA) with the US-based Argent LNG to import up to 5 million tonnes of liquefied natural gas per year for 20 years.

Argent LNG is developing a 25 million metric tonnes per annum LNG facility in Louisiana, a southeastern US state on the Gulf of Mexico. The facility is slated to go into operation in early 2030.

The HOA is a non-binding agreement, meaning neither party is obligated to agree to the terms listed in the document.

The agreement was signed by Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority, and Jonathan Bass, chairman and chief executive officer of Argent LNG, at a ceremony held at the Bangladesh Embassy in Washington, DC, on Friday.

If the Argent LNG project in Port Fourchon is completed, its cargoes could be sold to Petrobangla, Reuters said quoting the agreement.

The ministry of power, energy and mineral resources and Petrobangla, which are supposed to make the final call on LNG procurement, are yet to know of the issue.

Argent LNG is still in the exploration stage in Louisiana, said Muhammad Fouzul Kabir Khan, the adviser to the energy ministry.

"Such a deal will be further discussed with the designated government bodies before finalisation -- it's still in a very preliminary stage," Khan told The Daily Star.

Currently, Petrobangla imports around 5 million tonnes of LNG annually from two long-term contracts with Qatar Gas and Oman's OQ Trading, and 15-20 shipments from the international spot market.

This is the first major LNG supply deal for the US since President Donald Trump took office on Monday, according to Reuters.

Trump's 'Drill, Baby, Drill' energy mandate, which promotes the exploration and export of US energy resources, provided the foundation for this historic agreement, said a press release by BIDA, an apex investment promotion agency under the Chief Adviser's Office.

"Petrobangla has been seeking long-term solutions to the rising demand for energy in Bangladesh. This agreement not only ensures a reliable energy supply for Bangladesh's expanding industrial base but also strengthens our strategic partnership with the United States," Chowdhury said.

The deal marks a significant step in strengthening energy partnerships, Bass said.

"It paves the way for the US to supply reliable baseload energy to Bangladesh, enabling the country to expand its ability to grow."