Bangladesh’s energy security has come under renewed strain as escalating conflict in the Middle East disrupts global oil and gas supply routes, raising fears of shortages and price shocks if the crisis persists.
While there is no immediate fuel shortage, officials and energy experts warn that a prolonged conflict could severely affect Bangladesh’s import-dependent energy system.
Strait of Hormuz disruption
Following US and Israeli airstrikes on Iran, shipping through the Strait of Hormuz -- one of the world’s most critical energy corridors -- has been severely disrupted.
Reports indicate that hundreds of oil and LNG tankers are stranded at both ends of the strategic waterway.
Global oil prices have already surged by nearly 10% amid mounting uncertainty.
The situation has been compounded by drone attacks targeting Saudi Arabia’s Ras Tanura refinery, further heightening market volatility.
Bangladesh relies heavily on Middle Eastern supplies.
Most of its crude oil imports come from Saudi Arabia and the United Arab Emirates.
Refined petroleum products are sourced from the UAE, China, India, Thailand, Malaysia, Indonesia and Singapore.
LNG imports are primarily from Qatar and Oman.
Domestic gas production stands at around 1,710 million cubic feet per day, supplemented by 850 to 1,000 million cubic feet per day from LNG imports.
Bangladesh imports approximately 6 million tons of LNG annually through 115 cargoes, with nearly 4 million tons supplied by Qatar.
Petrobangla Chairman Md Erfanul Haque said the country currently operates two LNG terminals with limited storage capacity.
Of six scheduled LNG cargoes, four have arrived, while the remaining two face uncertainty.
“Short-term supply is manageable, but if the war drags on, maintaining normal flow will be difficult,” he cautioned.
Qatar suspends LNG production
In a major development, QatarEnergy announced on Sunday that it had suspended all LNG production and exports after Iranian drone strikes hit its key facilities in Ras Laffan Industrial City and Mesaieed Industrial City.
In an official statement, QatarEnergy said the suspension was a precautionary measure to ensure employee safety and protect critical infrastructure following military attacks on its facilities.
Qatar is one of the world’s top three LNG exporters and supplies nearly 20% of global LNG.
The suspension has already pushed European gas prices up by more than 30%, highlighting the global ramifications of the disruption.
Oil and LPG reserves
Bangladesh consumes approximately 1.4 million tons of liquefied petroleum gas (LPG) annually, with monthly demand of about 120,000 tons -- almost entirely imported from the Middle East.
Industry operators say supply remains stable for now, with 140,000 tons already received and another 190,000 tons en route, covering demand through Eid.
The Bangladesh Petroleum Corporation (BPC) has convened emergency meetings since the conflict escalated.
The country has storage capacity for 36 days of oil consumption but currently holds reserves sufficient for about 15 days, with an additional 20 to 25 days’ worth awaiting unloading.
The government has approved the import of 2.82 million tons of oil between January and June through a mix of open tenders and government-to-government agreements.
Growing vulnerability
Energy expert Dr Ijaz Hossain warned that if the conflict extends beyond two weeks, Bangladesh will face mounting pressure across all energy supplies, alongside rising import costs.
He urged the government to intensify domestic energy exploration and build strategic reserves equivalent to at least three months of consumption.
Bangladesh’s heavy reliance on Middle Eastern energy imports leaves it particularly vulnerable to prolonged disruptions in shipping and production.
With LNG exports from Qatar suspended and tanker movements constrained, the risk of supply tightness and higher prices is increasing if the conflict escalates further.