Bangladesh Prepares for Potential Disruptions in Fuel, LNG Supplies Amid Middle East Conflict

The ongoing Iran-US-Israel conflict has put Bangladesh's energy security and agricultural production at risk due to potential disruptions in fuel, LNG, and fertiliser supplies from the Middle East.

To mitigate this risk, the government is building strategic fuel oil reserves equivalent to 90 days of demand by utilizing various storage facilities. The plan includes using private-sector storage capacity as well as Bangladesh Railway fuel tankers and storage facilities owned by the armed forces, police, and other government agencies.

Bangladesh currently relies heavily on imported LNG, with domestic gas production in decline. The country has traditionally met much of its LNG demand through long-term contracts with Qatar and Oman, but supplies from these sources have been disrupted, forcing Bangladesh to increasingly rely on the spot market.