ALGERIA · ENERGY
Key Facts
- —The country Algeria is Africa’s largest country by area and a leading gas exporter, selling pipeline gas and liquefied natural gas (LNG) via Sonatrach.
- —What happened On Tuesday 20 October 2026 Algeria signed a Bangladesh gas pact, a memorandum of understanding on oil, gas and fertilizer cooperation, its ministry said.
- —The signatories Mohamed Arkab, Algeria’s Minister of State and Minister of Hydrocarbons, and Iqbal Hassan Mahmood, Bangladesh’s minister of power, energy and mineral resources.
- —What it covers Possible supply of crude oil, refined fuels, liquefied petroleum gas, LNG and fertilizers, with urea named, plus joint projects in exploration, transport and storage.
- —How it works A joint steering committee will set priorities, review projects and coordinate between the two governments and their energy companies.
- —Why now Bangladesh seeks new gas sources after disruptions to some LNG supplies, while Algeria’s LNG exports fell 6.5% in early 2026.
- —Still open No volume, price or start date has been announced, and the Bangladesh gas pact binds neither side to a purchase.
Algeria signed a Bangladesh gas pact on Tuesday 20 October 2026, the news site Echorouk Online reported from a ministry statement. The memorandum of understanding opens the way to Algerian LNG, fuel and urea fertilizer for Bangladesh, a South Asian country.
For US readers, the Bangladesh gas pact shows Asian buyers courting an exporter that Europe also needs, which can shift LNG prices. US exporters of liquefied natural gas chase the same Asian customers.
What the Two Ministers Signed
Mohamed Arkab, Algeria’s Minister of State and Minister of Hydrocarbons, signed the Bangladesh gas pact for Algeria, his ministry said. A memorandum of understanding is a framework paper that sets goals and a working method, but no prices or volumes.
His Bangladeshi counterpart, Iqbal Hassan Mahmood, runs the ministry of power, energy and mineral resources. He arrived in Algiers on Monday 19 October for a visit planned to last until Thursday 22 October.
What the Pact Covers
The text lists oil and gas exploration and production, and projects for transport, processing, storage and marketing. It also mentions investment opportunities and the exchange of expertise, technical studies and staff training between the energy companies of both countries.
On supply, the memorandum says Algeria may sell Bangladesh crude oil, refined fuels, liquefied petroleum gas (LPG) and LNG. It also names fertilizers, with urea, a nitrogen fertilizer made from natural gas, given as the example.
How the Talks Reached This Point
Arkab and Mahmood held a video call on Thursday 10 September, with Sonatrach chief executive Noureddine Daoudi on the line. Bangladesh said it wanted LNG purchase contracts and called Sonatrach a reliable supplier, according to the Algerian embassy in Dhaka.
The two ministers agreed then to set up a joint working group to prepare concrete agreements. On Monday 5 October Bangladesh’s home minister, Salahuddin Ahmed, told Algeria’s ambassador that Dhaka would import LNG and fertilizer from Algeria.
Why Bangladesh Wants Algerian Gas
Bangladesh is a South Asian country of more than 170 million people that imports much of its gas as LNG. Algerian outlet Algérie Eco wrote in September that Dhaka wants to diversify its sources after disruptions to some traditional LNG imports.
On Tuesday 13 October Bangladesh approved nine LNG cargoes from the trader Trafigura for delivery from December 2026 to December 2027, Maritime Gateway reported. The price is US$0.10 per million British thermal units below the Japan Korea Marker, a benchmark for Asian LNG.
What Algeria Gains From New Buyers
Algeria exported about 4.47 million tonnes of LNG in the first half of 2026, down 6.5% from 4.78 million tonnes, Algérie Eco reported. More than 90% went to five European countries, and only about 440,000 tonnes went elsewhere.
Attaqa, an energy news platform, reported in September that Dhaka was weighing about 10 LNG cargoes a year from Algeria. It cited sources and said talks were at an early stage.
What It Means for US Readers
Every extra cargo Algeria sends to Asia is one that Europe cannot buy, and Europe is also a major buyer of US LNG. If the Bangladesh gas pact turns into cargoes, that can tighten supply and lift gas prices.
Fertilizer matters too, because urea is made from natural gas and US farmers buy it on a world market. Europe is already pressing Algeria for more supply, as the Rio Times report on France asking Algeria for gas shows.
What Is Not Known
No volume, price, contract length or first delivery date has been announced for LNG or urea. The memorandum does not commit either country to buy or sell anything.
It is open whether Sonatrach can free up LNG cargoes beyond its long-term contracts with European buyers. The Rio Times Algeria explainer shows how far the economy still depends on gas.
More: Algeria news in English, every day from The Rio Times.
Frequently Asked Questions
What did Algeria and Bangladesh sign on 20 October?
They signed a Bangladesh gas pact, a memorandum of understanding on hydrocarbons cooperation, according to an Algerian ministry statement. It covers oil, gas, LNG and fertilizers such as urea.
Is the Bangladesh gas pact a purchase contract?
No, it is a framework agreement that sets goals and a joint steering committee. It names no volume, price or delivery date.
Who signed the memorandum?
Mohamed Arkab, Algeria’s Minister of State and Minister of Hydrocarbons, and Iqbal Hassan Mahmood, Bangladesh’s minister of power, energy and mineral resources. The Bangladeshi minister is on a visit to Algiers planned until 22 October.
What is urea and why is it in the pact?
Urea is a nitrogen fertilizer made from natural gas and used widely by farmers. The memorandum names it as an example of the fertilizers Algeria could supply.
Why does the Bangladesh gas pact matter to American readers?
Algerian LNG that goes to Asia is not available to Europe, which also buys US LNG. Fertilizer and gas prices both feed into US farm and energy costs.
Sources: Echorouk Online (Algiers), memorandum of understanding to supply hydrocarbons and fertilizers to Bangladesh, 20 October 2026; Echorouk Online, Bangladesh’s energy minister arrives in Algeria for a working visit, 19 October 2026; Algérie Eco, Le ministre de l’Énergie du Bangladesh en visite de travail en Algérie, 19 October 2026; Algérie360, GNL algérien : le Bangladesh veut signer avec Sonatrach, 11 September 2026; Dhaka Tribune, Bangladesh eyes LNG, fertiliser import from Algeria, 5 October 2026; Maritime Gateway, Bangladesh approves nine LNG cargoes from Trafigura, 15 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief