The government has provided clarification regarding the recently signed heads of agreement (HOA) with US-based Argent LNG for the potential import of up to 5 million tonnes of liquefied natural gas (LNG) annually for 20 years.

In a statement issued today, Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (BIDA), explained the nature of the HOA, signed last Friday at the Bangladesh Embassy in Washington, DC.

"Signing a non-binding HOA that outlines key terms but leaves room for negotiation is the first step in a process," Harun siad.

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He emphasised that any subsequent binding agreement would adhere to Bangladesh's legal framework, including the Public Procurement Act, 2006, the Public Procurement Rules, 2008, and the Foreign Private Investment (Promotion and Protection) Act, 1980.

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 Chowdhury Ashik, the executive chairman of BIDA, 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.