[🇧🇩] Energy Security of Bangladesh

[Saif]

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Bangladesh has one month's fuel reserves, government working to increase stock: Cabinet Secretary

UNB
Published :
Mar 25, 2026 23:49
Updated :
Mar 25, 2026 23:49

Bangladesh currently has about a month’s supply of fuel, Cabinet Secretary Nasimul Ghani said on Wednesday, noting that the country normally maintains a 15-day reserve.

Ghani made the remarks during a briefing at the Press Information Department following a Cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat. He said the government is taking steps to further increase fuel reserves to ensure stability amid the ongoing international energy crisis.

Asked about the Prime Minister’s response to the ongoing international energy crisis, the Cabinet Secretary said, “The Prime Minister reviewed all available government resources, assessed progress, and examined the steps taken by the ministries. I can briefly say that the reserves are sufficient.”

Commenting on panic buying, Ghani said, “Excess fuel purchased unnecessarily could go to waste. The situation should normalize in a few days once public confidence returns. Under the government’s plan, the reserves are being increased further.”

Regarding the rise in jet fuel prices, Ghani explained, “The international price of jet fuel has increased. Airlines operating here also follow the international rate, so the price movement is aligned with global trends.”

He confirmed that the one-month reserve includes all types of fuel and added that the Cabinet Committee on Purchase has approved the acquisition of two cargoes of LNG.

Ghani also said that fuel not immediately available under contracts is purchased from the spot market, and decisions have to be made quickly, often within 10 hours of the cargo’s arrival.

Responding to rumors about a fuel price hike, he said, “I am not aware of any such plan, and there are no signs of it at this stage.”

The Cabinet Secretary reiterated that fuel is being procured from multiple sources to maintain and expand the country’s reserves.​

 

[Saif]

Bangladesh to receive 192k tonnes of LNG in 10 days to bolster energy supply

Amid ongoing tensions in the Middle East, state-run Petrobangla has imported approximately 192,000 tonnes of Liquefied Natural Gas (LNG) to ensure an uninterrupted energy supply across the country. According to Petrobangla, the consignments from Australia, Indonesia, and the USA are schedule

thefinancialexpress.com.bd

Bangladesh to receive 192k tonnes of LNG in 10 days to bolster energy supply

UNB
Published :
Mar 26, 2026 22:33
Updated :
Mar 26, 2026 22:33

Amid ongoing tensions in the Middle East, state-run Petrobangla has imported approximately 192,000 tonnes of Liquefied Natural Gas (LNG) to ensure an uninterrupted energy supply across the country.

According to Petrobangla, the consignments from Australia, Indonesia, and the USA are scheduled to arrive via three separate vessels within the next ten days.

The Liberian-flagged tanker ‘HL Puffin’ has already arrived at Chattogram port carrying approximately 62,000 tonnes of LNG from Australia, port authorities confirmed. Petrobangla stated that preparations are underway to discharge the fuel at the Floating Storage and Regasification Unit (FSRU) of RPGCL located in Moheshkhali, Bay of Bengal.

Chattogram Port sources revealed that another LNG carrier, ‘New Brave’, is expected to reach the port on March 27. The Liberian-flagged vessel is transporting nearly 61,500 tonnes of LNG from Indonesia.

Furthermore, a third vessel, ‘Celsius Galapagos’, is slated to arrive in Bangladesh on April 4. Flying the flag of the Marshall Islands, this tanker is bringing approximately 70,000 tonnes of liquefied gas from the United States.

Chattogram Port Authority (CPA) Secretary Md. Omar Faruk said that the conflict in the Middle East has triggered a global energy crisis, the impact of which is also being felt in Bangladesh.

He emphasized that the port is prioritizing the berthing and discharging of energy vessels to maintain a steady fuel supply.

"One ship with 62,000 tonnes has already arrived. Another is expected this Friday, and a third consignment from the US will reach us by April 4," he added.​

 

[Saif]

Energy supply volatility & challenges for Bangladesh

The Middle East crisis surrounding Iran-Israel-USA war has been showing little signs of easing. It has been causing losses of thousands of human lives and billions of dollar worth of property. Already the world energy market has been facing serious supply chain disruptions triggering sharp rise in

thefinancialexpress.com.bd

Energy supply volatility & challenges for Bangladesh

Mushfiqur Rahman
Published :
Mar 26, 2026 23:10
Updated :
Mar 26, 2026 23:10

The Middle East crisis surrounding Iran-Israel-USA war has been showing little signs of easing. It has been causing losses of thousands of human lives and billions of dollar worth of property. Already the world energy market has been facing serious supply chain disruptions triggering sharp rise in the prices of Octane, petrol, diesel, Jet fuel, LPG, LNG and other petroleum products.

Countries in South-East and South Asia have been compelled to introduce fuel rationing for consumers. The developed and industrially advanced economies have been expressing their concerns of looming economic crisis, inflation pressure and lower growth of economy due to the escalation of war and the rise of oil price. Many countries have already introduced energy conservation measures including 'work from home' and 'reduction of vehicular movement on the road to reduce fuel usage' as emergency measures to combat oil demands. Iran has warned that it would strike energy and water infrastructure (the Gulf states are heavily reliant on desalinisation plants for their sweet water supply from these plants) across the Gulf if US President Trump follows through his threat to attack (issued on March 21, 2026) its electricity infrastructures. It may be mentioned that the President Trump set a deadline (of 2345GMT (7:45 PM Bangladesh Time), March 23, 2026) to attack Iran's electricity infrastructure unless the authorities in Iran fully reopen the Strait of Hormuz within next 48 hours.

International Energy Agency (IEA) considers that the Middle East conflicts have severely damaged at least 40 energy assets in the Gulf region and they would not be immediately restored for energy supply. IEA Executive Director Fatih Birol said, 'the growing fallout could be seriously compounded through interruptions of the vital arteries of the global economy, including petrochemicals, fertilizers, sulfur and helium.'

Bangladesh has been suffering from manifold economic crises including high inflation, poor investment, massive unemployment and social stresses for last couple of years. The war in the Middle East has virtually blocked the Strait of Hormuz and growing fuel prices have been threatening further economic and social crises in the country. In Bangladesh, fuel oil supply shortages have been felt as several fuel pimps remain closed over two weeks. The pumps which are operating so far have been handling several kilometer-long queues for vehicles wanting to buy fuel oil. LGED Minister and the Ruling BNP Secretary General Mirza Fakhrul Islam Alamgir raised alarm that the war had been casting serious damage for our country. He felt that the prices for fuel oil and other commodities would increase in the days to come. Bangladesh government has been searching for alternative supply sources for fuel oil and LNG. However, the sources are limited and supply chain disruptions in the Middle East squeezes alternative markets for oil and gas.

Bangladesh imports major share of LNG from Qatar and Oman, the two countries in the Gulf. Both the countries are heavily dependent for exports through the Strait of Hormuz. In addition, Qatar, the main LNG exporter has suffered from the air borne attacks (at the Ras Laffan Gas processing industry in Qatar) and was compelled to temporarily shut its LNG production. Moreover, the missile attacks had damaged its LNG production plan and the plant's 17 per cent capacity had been damaged. Restoration of the LNG plant's capacity would take several months after the war ends. On the other hand, domestic natural gas production in Bangladesh has been steadily declining and declined to approximately 1,900 MMCFD (against the daily average demands for 3,800 MMCFD). LNG price has nearly doubled in the spot market (also significantly dependent on the Middle East supply). Petrobangla sources inform that Bangladesh has purchased 2 LNG cargos from the spot market in a desperate effort at over US$28 per MMBTU, while another at US$24 per MMBTU in the first week of March 2026. The price for LNG was below $10 per MMBTU on March 1, 2026. Energy Secretary Saiful Islam said to local media that the global LNG market became unstable following the damage at the Qatar's energy facilities. He added, 'we are buying spot LNG at an exorbitant price, which is almost 2.5 times higher than the price four days ago'. Petrobangla had to go to the spot LNG market as the QatarEnergy was scheduled to supply under contract with Petrobangla 40 out of the country's planned 115 LNG cargoes this year. But the war has pushed the supply to uncertainty. QatarEnergy had formally notified Petrobangla on March 2, 2026 the force majeure. Qatar plays a critical role in the global LNG market accounting for approximately 20 per cent of global LNG supply and the disruption of LNG supply from Qatar has already triggered sharp price spikes in global gas market.

Import of LPG (98 per cent of Bangladesh LPG demand has been met by Middle East based shipments) is also dependent mainly on the Gulf area supply through the Strait of Hormuz. Freight costs have been rising for LPG imports too.

BPC reserves of crude oil is not huge. Eastern Refinery (ERL), the sole refinery under Bangladesh Petroleum Corporation (BPC) has a capacity to refine 1.5 million tons of crude oil. The ERL can process light crude supplied by Kingdom of Saudi Arabia and United Arab Emirates. Again, the supply comes through the Persian Gulf and the Strait of Hormuz. Due to crisis in the region crude oil supply has become uncertain. The existing reserve for diesel, petrol, octane, furnace oil has been declining (ERL productions can meet approximately 20 per cent of Bangladesh's total fuel oil demand and the balance is imported as finished products). The finished petroleum products are imported from different supply sources of the East Asian, South Asian and Middle Eastern countries. However, the Strait of Hormuz alone supplies approximately 20 per cent of all kinds of petroleum products in the global market. Hence, the crisis and blockade in the Strait of Hormuz destabilised supply chain pushing the petroleum product price in the market.

Published information indicates that Bangladesh had a demand of 6.83 million tonnes of petroleum products during FY 2024-2025. ERL supplied 1.25 million tones and the balance was met by imports (during FY2024-2025 BPC imported 1,520,994 metric tons of crude oil and 4,704,985 metric tonns of refined oil). Installed storage capacity for petroleum products in the country is approximately 1.57 million metric tonnes. It has been felt that a second refinery would greatly ease and diversify country's petroleum product supply chain. The government has been actively trying to materialise the ERL expansion project to double its present refining capacities. BPC intends to install the ERL Unit 2 with a crude oil refinery capacity 3.0 million tonnes per annum by 2030 with an estimated cost of 2.89 billion US dollars (approximately 354.65 billion taka). An Islamic Development Bank (ISDB) mission has in principle agreed to provide Bangladesh a loan of US$ 1.0 billion in phases for implementing the project. The loan Agreement is expected to be signed in April this year. The project is planned to be implemented within 2030.

Mushfiqur Rahman is a mining engineer. He writes on energy and environment issues.​

 

[Saif]

3 more LNG-carrying ships to arrive at Ctg port

Three more ships carrying approximately 200,000 tonnes of Liquefied Natural Gas (LNG) are expected to arrive at Chattogram port within the next five days. One of the ships has already entered the country's territorial waters, with the remaining two scheduled to arrive by Wednesday. The total L

thefinancialexpress.com.bd

3 more LNG-carrying ships to arrive at Ctg port

BSS
Published :
Mar 27, 2026 17:50
Updated :
Mar 27, 2026 17:50

Three more ships carrying approximately 200,000 tonnes of Liquefied Natural Gas (LNG) are expected to arrive at Chattogram port within the next five days.

One of the ships has already entered the country's territorial waters, with the remaining two scheduled to arrive by Wednesday. The total LNG capacity of the three ships is around 193,000 tonnes.

On Friday, Chattogram Port Authority Secretary Syed Refayet Hamim confirmed that the 'HL Puffin' tanker, carrying 61,997 tonnes of LNG from Australia, arrived at the Kutubdia coast on Thursday. Additionally, two more ships, 'New Brave' with 61,000 tonnes of LNG from Indonesia and 'Celsius Galapagos' with around 70,000 tonnes of LNG from the United States, are expected to reach the port by Wednesday.

Md. Nurul Alam, Senior Deputy General Manager of Uni Global Business Limited, the local shipping agent for the two ships, said that both tankers are currently on schedule to arrive as planned.

Approximately 70 percent of Bangladesh's LNG imports come from Qatar, but recent uncertainties in the Middle East have raised concerns about the supply. Two LNG tankers from Qatar were expected to arrive this month, but only one has reached the country, while the other remains stuck at Ras Laffan Port.

In total, seven LNG tankers have arrived this month, compared to the usual 10 to 11 per month. Petrobangla, the state-owned company responsible for LNG imports, is exploring alternative sources to mitigate the supply uncertainty. Despite the situation in the Middle East, officials do not anticipate a major supply crisis at this time.​

 

[Saif]

Building ‘strategic capacity’ in fossil fuels isn't the answer to our energy crisis

Bangladesh has been entrapped in medium-term energy challenges.

www.thedailystar.net

Building ‘strategic capacity’ in fossil fuels isn't the answer to our energy crisis

27 March 2026, 09:00 AM
Khondaker Golam Moazzem

Long queues of cars and motorcycles stretched from the Trust Filling Station in the Bijoy Sarani area beyond the BAF Officers’ Mess in Tejgaon, Dhaka, on March 24, 2026. PHOTO: PRABIR DAS

Bangladesh has been entrapped in medium-term energy challenges because of the US-Israel war against Iran and its consequent impact on crude oil infrastructure and supply chains based around the Strait of Hormuz. The government has so far maintained a roll-out plan by rationing energy supply. However, with the expected demand for air-cooling systems and the need for electricity and diesel for irrigation for Boro rice cultivation, energy requirements are likely to increase further from April. The coming month(s) will also require fertiliser supply for Boro cultivation, which the government is trying to manage through imports.

Meanwhile, industrial production, both in export-oriented and domestic markets, has started to decline. Rising energy prices are likely to increase the shipment costs of imported products, which could push food inflation further. Therefore, addressing challenges from a prolonged energy crisis would require medium- to long-term strategies.

The government’s top priority must be to establish a structured system of energy and electricity rationing, ensuring that limited resources are directed towards vital economic activities such as production, job creation, and export industries. Several think tanks, academics, and policy analysts have offered suggestions for building strategic capacity in fossil fuels, particularly diesel and LNG, to address emergency requirements. Some are enthusiastic about using imported coal or exploring domestic coal as a strategic option for energy security. Such initiatives would wrongly mix short-term strategies with long-term priorities.

It should be noted that borrowing to import LNG, developing additional LNG and diesel infrastructure based on interest-bearing long-term loans, and importing or mining coal from local mines using foreign loans and public funds will further deepen the indebtedness of the Ministry of Power, Energy and Mineral Resources, and severely damage the sector’s long-term energy transition plan under the Renewable Energy Policy 2025.

As part of a transition towards clean energy, a more cost-effective solution would be to explore domestic natural gas from “probable” wells. The government should immediately expedite drilling works in Srikail Deep-1, Mobarakpur Deep-1, and Fenchuganj South-1. It should also allocate additional funds to explore natural gas in other “probable” and “possible” onshore sites. Besides, foreign companies currently involved in onshore gas exploration must be pushed to update their operations regularly. The Tengratilla Gas Field (Chhatak West) is now out of international dispute and ready for re-exploration. The chances of discovering new reserves there are high. As a long-term strategy, the government must take bold steps to explore offshore gas blocks. Petrobangla must learn from earlier failures and proceed with re-tendering based on feedback from international oil and gas companies.

The government should also emphasise replacing diesel-based irrigation with solar-based systems soon. Approximately 13 lakh irrigation pumps annually use 10 lakh tonnes of diesel, about 15 percent of total diesel imports, costing about $1 billion each year. A rapid shift to solar irrigation could significantly reduce import dependency and save foreign currency. Moreover, solar irrigation with net metering could generate additional income for farmers and installers during the off-season from power distribution companies. Hence, the ministry needs to boldly act to accelerate net-metering connections through distribution companies such as the Bangladesh Rural Electrification Board (BREB).

Diesel and LNG use in industrial units can be reduced by 15-20 percent if rooftop solar power generation is expedited. Access to low-cost financing for installing solar panels on industrial rooftops in the Export Processing Zones or specialised industrial parks through local commercial banks, international financial institutions, and development banks could make this possible. Bangladesh Bank’s Sustainable Refinance Scheme needs to be expanded and simplified for interested companies. Additionally, multilateral development banks and international financial institutions should introduce credit-guarantee schemes to support the government and reputable commercial banks in financing renewable energy projects, thereby de-risking these opportunities.

Meanwhile, the transport sector is the largest consumer of total diesel imports. The transition from diesel-operated to battery-operated vehicles, or EVs, has been delayed due to many reasons, including vested interests. The government should introduce fiscal and budgetary incentives to promote EVs, charging stations, and related maintenance facilities across the country. Bangladesh’s bilateral trade agreements with countries that promote diesel, petrol, or LNG-based transport need to be revisited. The ministries of transport, power and energy, finance, and planning must work together to develop nationwide infrastructure for EV-based transport as soon as possible.

The power and energy ministry should also forge ahead with its renewable energy initiatives—the National Rooftop Solar Programme 2025 and utility-scale solar power plants through public procurement. Successful implementation of these programmes could generate about 8,000 MW of electricity in a short period and reduce dependence on gas, LNG, and coal-based power generation, thereby lowering reliance on imported fossil fuels, which cost about $7 billion annually.

The regional power grid for renewable energy trading—already operating at a limited scale between Bangladesh, India, and Nepal—needs further expansion. Extending the grid through India to Nepal and Bhutan could enable Bangladesh to access more low-cost renewable electricity, reducing dependence on costlier LNG-based generation. It would also allow Bangladesh to export surplus electricity to regional markets. Such measures could further reduce reliance on high-cost fossil fuel-based power generation.

Bangladesh’s strategic reserves should not be directed towards expanding LNG, diesel, and coal infrastructure or increasing imports using scarce foreign exchange at a time of tightened reserves. Instead, the country’s strategic focus should be on gradually implementing cost-effective and sustainable renewable energy solutions across power generation, irrigation, and industry and household use. This transition would significantly reduce demand for imported fossil fuels—diesel, crude oil, LNG and LPG—in later years. There is no need for new investments in fossil fuel infrastructure that would burden the country with long-term debt for 20-25 years. Bangladesh is not in a position to bear that burden.

Ultimately, energy security and sustainability will depend not on diesel, LNG, coal, or LPG, but on solar, wind, hydro and waste-to-energy systems for power generation, transmission, and distribution.

Dr Khondaker Golam Moazzem is research director at the Centre for Policy Dialogue (CPD).​