Energy alteration drive underway
The Bangladeshi government has adopted a series of measures to mitigate the ongoing energy crisis triggered by escalating tensions in the Middle East, including seeking alternative suppliers and reducing domestic energy consumption.
As part of its diplomatic efforts, Dhaka is negotiating petroleum imports from multiple African nations to reduce dependence on Gulf producers, whose supplies have been under pressure since the escalation of conflict involving the United States, Israel, and Iran on 28 February 2026.
Officials are concerned that prolonged instability in the region could disrupt supply chains heavily reliant on Gulf countries.
Bangladesh’s High Commissioner to Nigeria, Miah Md Mainul Kabir, recently held discussions in Abuja with Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, to formally request petroleum exports.
Ekpo, who serves under President Bola Tinubu, oversees the implementation of the Nigerian Gas Master Plan 2026 and broader sector reforms.
In line with this strategy, Bangladesh’s Ministry of Foreign Affairs has directed its nine diplomatic missions across Africa — covering Algeria, Egypt, Ethiopia, Kenya, Libya, Mauritius, Morocco, Nigeria, and South Africa — to initiate talks with host governments and relevant stakeholders regarding potential petroleum supplies.
A virtual meeting involving the ministry, Bangladesh Petroleum Corporation (BPC), and the country’s African missions is expected later this month to accelerate negotiations.
Bangladesh’s ambassador to Algeria, Md Najmul Huda, is preparing for direct talks with Algerian authorities, while Ambassador Sadia Faizunnesa is exploring new supply avenues in Morocco.
Currently, Bangladesh relies primarily on Gulf countries such as Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, and Oman through government-to-government agreements.
To reduce this dependency, authorities are also considering expanding the capacity of Eastern Refinery Limited to strengthen domestic refining.
Africa’s major oil producers — including Nigeria, Libya, Angola, and Algeria — present a potential alternative, though Bangladesh has not imported petroleum from the continent for over five decades.
Long-term agreements with European and Chinese investors have limited the availability of African oil for new buyers.
Despite rising global competition for alternative energy supplies, Iqbal Hassan Mahmood said Bangladesh faces no immediate shortage, noting that supply has improved.
Alongside these diplomatic initiatives, the government has introduced domestic energy austerity measures. Fuel consumption for official vehicles assigned to the prime minister, ministers, and state ministers will be reduced by 30 per cent.
Electricity and gas use in government offices will be cut by the same margin, and public-sector purchases of vehicles, watercraft, aircraft, and computers have been suspended. Spending on building beautification has been curtailed, and land acquisition activities are temporarily paused.
Bangladesh is also increasing reliance on spot-market liquefied natural gas (LNG) imports to ensure supply stability.
Authorities plan to procure three additional LNG cargoes for May, following the tendering of 12 cargoes since late February, of which nine have already been secured for April at significantly higher prices.
LNG prices have surged to around $20 per million British thermal units, up from the typical $10–11 range, due to production and export disruptions in the Gulf.
Imported LNG currently accounts for about 30 per cent of Bangladesh’s gas supply, while domestic production remains insufficient to meet growing demand.
These combined measures — diplomatic engagement, diversification of imports, domestic energy austerity, and expanded LNG procurement — reflect a comprehensive strategy by Dhaka to maintain energy security amid global supply volatility and geopolitical uncertainty.
