Rising tensions between Israel and Iran in the Middle East have sparked concerns over Bangladesh’s energy security. Analysts warn that any disruption to the import of liquefied natural gas (LNG) or liquefied petroleum gas (LPG) could significantly impact the country’s power generation and industrial operations, which are heavily reliant on steady energy supplies.
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Volatility in the LPG Market
Since January, the domestic LPG market has experienced notable instability. In February, consumers were forced to pay nearly double for gas cylinders. Although prices have marginally decreased since, households continue to pay an additional 400–500 Bangladeshi taka per cylinder. Market analysts caution that any escalation of regional conflict could further destabilise LPG supplies, creating significant challenges for domestic fuel distribution and affordability.
Government Measures
Last Sunday, the Prime Minister convened a high-level meeting at the Secretariat to review the national energy situation. Attendees included the Foreign Affairs Adviser, the State Minister of Energy, and senior officials from the energy and trade sectors. The Prime Minister emphasised that uninterrupted energy supply must be maintained under all circumstances. Following the meeting, Foreign Affairs Adviser Humayun Kabir reassured the press that Bangladesh would not face immediate shortages despite regional tensions.
LNG Supply Overview
Bangladesh currently receives a daily gas supply of 2.6–2.7 billion cubic feet, with approximately 950 million cubic feet sourced from LNG imports. The country imports roughly six million tonnes of LNG annually through 115 cargo shipments, with four million tonnes secured via long-term contracts with Qatar and the remainder obtained from Oman and spot markets. Two floating storage and regasification units off Moheshkhali currently maintain LNG at controlled temperatures before feeding it into the national grid. In March, eleven cargo shipments are scheduled, nine of which have already safely transited the Strait of Hormuz.
LNG Supply Snapshot
| Supply Aspect | Quantity |
|---|---|
| Daily Gas Supply | 2.6–2.7 billion cubic feet |
| LNG Imports | ~950 million cubic feet |
| LNG from Qatar | 4 million tonnes |
| Total LNG Cargo Shipments | 115 |
LPG Market and Petroleum Reserves
Bangladesh imports approximately 1.8 million tonnes of LPG annually, primarily through private sector channels. November saw imports drop by 44%, causing acute shortages in January. Government approval increased imports in February, with 91,000 tonnes arriving via Chattogram and Mongla ports by 21 February—a 44% rise compared to January. Despite customs reductions and a 15-taka decrease in the official price of a 12-kg cylinder on 24 February, retail prices remain between 1,600–1,850 taka per cylinder.
Annual petroleum demand is about seven million tonnes, with 2.82 million tonnes approved for import from January to June. Storage capacity can cover 36 days of supply, while current reserves range from 15–30 days. Stockpiles include diesel (12 days), petrol (19 days), octane (29 days), and furnace oil (90 days), with an additional 15–20 days of supply expected via sea transport.
Expert Perspectives
Energy expert Dr. M. Tamim noted that Middle East conflicts serve as a serious warning for import-dependent countries like Bangladesh. Sudden price hikes in petroleum, LNG, or LPG represent a tangible risk that requires careful monitoring and proactive policy measures.
In conclusion, while the government has taken measured steps to safeguard the energy supply, international volatility continues to pose a potential threat, underscoring the need for continuous oversight and preparedness.