Conflict Threatens Bangladesh's Energy Security

The Iran-US-Israel conflict is posing a significant threat to Bangladesh's energy security and economy. The country's reliance on Middle Eastern supplies of fuel oil, liquefied natural gas (LNG), and fertiliser is being disrupted, affecting power generation, industrial production, transport, and agriculture.

The government has begun emergency preparations to build strategic fuel oil reserves equivalent to 90 days of demand. This includes using Bangladesh Railway fuel tankers, storage facilities owned by the armed forces, police, and other government agencies, as well as private-sector storage capacity.

Bangladesh is seeking new fertiliser suppliers outside the Middle East, particularly countries that do not depend on Middle Eastern shipping routes. The country's agriculture secretary said, 'The government is trying to procure fertiliser, fuel oil, and other petroleum products from alternative sources. There is no alternative to this under the current circumstances.'

The conflict has shown that contracts and sufficient funds do not necessarily guarantee LNG supplies. International suppliers have reportedly failed to deliver contracted cargoes after securing higher prices elsewhere.