War in Middle East forces Bangladesh to hunt for new oil, LNG suppliers

The escalating conflict in the Middle East has triggered serious concerns over Bangladesh’s energy security as disruptions affect major global supply routes and key exporters.

The Strait of Hormuz, one of the world’s most vital energy transit corridors, has reportedly become inoperative amid military tensions. Qatar has halted liquefied natural gas (LNG) exports following attacks, while Saudi Arabia’s state-owned oil giant, Saudi Aramco, temporarily shut down its largest refinery in Ras Tanura as a precaution after drone strikes.

Bangladesh relies heavily on imports for its energy needs, sourcing all crude oil from Saudi Arabia and the United Arab Emirates, while most LNG shipments originate from Middle Eastern suppliers. With supplies under threat, the government has begun exploring alternative sources to prevent a potential energy crisis if the conflict persists.

Officials at the Energy Division have initiated discussions on diversifying imports. Alternatives under consideration include LNG shipments from Australia, Malaysia, Angola and the United States. Efforts are also underway to explore LPG imports from selected African nations through diplomatic channels.

Petrobangla Chairman Md Erfanul Haque said four LNG cargoes currently in transit have already crossed the Strait of Hormuz, while two remain uncertain. Authorities are preparing to source LNG from long-term suppliers through alternative routes or purchase from the spot market if necessary. However, Bangladesh’s two floating storage and regasification units (FSRUs) at Maheshkhali have limited capacity, accommodating only one vessel at a time.

Bangladesh Petroleum Corporation (BPC) has also started shifting focus towards importing refined petroleum products instead of crude oil and seeking LPG supplies from new markets.

Energy experts warn that prolonged disruption could force Bangladesh to procure LNG from the spot market at significantly higher prices, increasing import costs and pressure on foreign exchange reserves. With scheduled cargo arrivals uncertain, authorities say urgent diversification and contingency planning are critical to safeguarding energy stability.

If the crisis deepens, higher transportation costs and volatile global prices may further strain the country’s energy sector in the coming months.