The ongoing war in the Middle East (ME) has put the country’s energy supply system at risk. One of the world’s key global energy transportation routes, the Strait of Hormuz in Iran, has become inoperative due to the conflict. Qatar has halted its liquefied natural gas (LNG) exports following attacks. After drone strikes, Saudi Arabia’s state-owned oil company, Saudi Aramco, has shut down the country’s largest refinery in Ras Tanura as a precautionary measure.
Bangladesh imports all of its crude oil from Saudi Arabia and the United Arab Emirates, while most of its LNG comes from Middle Eastern countries. To avoid a potential energy crisis if the war prolongs, the government’s Energy Division has already begun searching for alternative energy sources. State Minister for Power, Energy and Mineral Resources, Iqbal Hasan Mahmud, is holding regular meetings with concerned officials on this matter.
Alternative LNG import options are being considered from Australia, Malaysia, Angola, and the United States. Meanwhile, the Ministry of Foreign Affairs is attempting to arrange LPG imports from a few African countries.
The Chairman of Petrobangla (Bangladesh Oil, Gas and Mineral Corporation), Md. Erfanul Haque, said on Tuesday that Bangladesh imports LNG from various sources. Of the six cargoes currently in the pipeline, four have already crossed the Strait of Hormuz, while two remain uncertain. Long-term suppliers have been requested to provide LNG from alternative sources, which may include Australia, Malaysia, Angola, and the United States. Emails have already been sent in this regard. If they fail, Bangladesh is prepared to purchase LNG from the spot market.
The two floating LNG terminals (FSRUs) in Maheshkhali are the country’s only means of LNG storage, each capable of holding only one ship at a time. As a result, LNG vessels are scheduled throughout the year at regular intervals. Authorities are currently concerned about shipments expected on the 15th and 18th. If the four vessels that have already crossed the Strait of Hormuz arrive on schedule, there will be no LNG supply concerns until March 15. If the war continues for a prolonged period, LNG will be purchased from the spot market.
The Chairman of Bangladesh Petroleum Corporation (BPC), Md. Rezanur Rahman, said efforts have already been made to import fuel from alternative sources. Plans are underway to import refined oil instead of crude oil. Attempts are also being made to import LPG from a few African countries, and letters have been sent to the relevant nations through the Ministry of Foreign Affairs.
Energy expert Professor Dr. Mohammad Tamim stated that Bangladesh primarily imports crude oil from Saudi Arabia and Kuwait, with a large portion passing through the Strait of Hormuz. About 80 percent of Qatar’s gas also passes through the Strait. Over the next two to three months, at least 24-25 LNG cargoes were scheduled to arrive from Qatar, but these imports are now completely stalled. The government must quickly take initiatives to secure alternative energy sources.
Bangladesh imports diesel from countries with refineries such as India and Singapore. However, 50 percent of India’s oil also comes from Arab countries. Therefore, having refineries does not necessarily guarantee refined oil supply.
Due to disruptions, India and Singapore are also facing difficulties in obtaining crude oil. Under a new agreement, one cargo is expected to arrive from the United States. As emergency alternatives, LNG may need to be imported from Australia, Indonesia, Brunei, and the United States. However, longer distances will increase import and transportation costs. The government must prioritize finding alternative sources and ensuring energy supply.
Energy and sustainable development expert Dr. Ijaz Hossain noted that within a week, Bangladesh will need to seriously explore alternative fuel sources. If Iran keeps the Strait of Hormuz closed and covert attacks continue, the global energy market will be significantly affected. In that case, Bangladesh must seek alternative energy supplies.
However, shifting to alternatives will immediately increase fuel prices. Bangladesh imports LNG from Qatar at comparatively lower long-term prices, but this supply is now disrupted. LNG may be purchased from the spot market, though the source of cargoes in the spot market is often unclear. If spot market prices rise to $15 per unit, Bangladesh will face significant pressure. Since Bangladesh mainly imports refined oil, it will have to source it from countries with operational refineries.
