Bangladesh eyes Latin America for energy security
Bangladesh is increasingly looking towards Latin America as a potential frontier for energy cooperation as part of efforts to diversify import sources and reduce its long-standing dependence on Gulf suppliers.
Diplomatic and energy sector sources said the move reflects a broader recalibration of Dhaka’s energy diplomacy at a time when global fuel markets remain volatile due to geopolitical tensions, supply chain disruptions and the accelerating transition towards cleaner energy systems.
According to data from the International Energy Agency (IEA) and Bloomberg, global LNG spot prices surged to more than $60 per MMBtu in 2022 following the Russia-Ukraine conflict, compared with less than $10 before the war.
The sharp rise exposed the vulnerability of import-dependent economies such as Bangladesh, prompting the government to introduce load-shedding measures and tighten fuel imports in order to protect foreign exchange reserves.
Officials at Bangladesh Bank and the Energy Division estimate that Bangladesh’s annual fuel and energy import bill now exceeds $10 billion, placing continued pressure on the country’s dollar market and balance of payments.
At present, Qatar and Oman remain Bangladesh’s principal
long-term LNG suppliers, while Saudi Arabia, the United Arab Emirates, Kuwait and Oman are the main sources of petroleum imports, largely through government-to-government arrangements.
However, policymakers at the Ministry of Power, Energy and Mineral Resources and the Ministry of Foreign Affairs believe that excessive dependence on a single region carries strategic and economic risks, particularly as conflicts and political instability continue to influence global fuel prices.
Sources said Bangladesh has therefore started examining Latin American markets as alternative and complementary energy sources with the aim of building a more resilient and diversified supply system.
Energy analysts say diversification has become increasingly important as Bangladesh’s energy demand continues to grow alongside industrialisation, urbanisation and economic expansion.
“Bangladesh’s energy demand is increasing steadily, and to meet that demand we must focus not only on our own resources, including gas and solar, but also on alternative markets,” energy expert BD Rahmatullah told The New Nation.
He said Bangladesh should avoid dependence on any single source of energy and continue developing relations with new suppliers and markets.
“In this regard, Latin American countries could emerge as potential partners because of their extensive energy resources. However, detailed assessments will be necessary before moving forward,” he added.
“If crude oil is imported from Latin America, refining capacity will become an important issue. It will depend on how much our Eastern Refinery Limited can process.”
South America has emerged in recent years as one of the world’s fastest-growing energy regions, with significant reserves of oil, natural gas, lithium and renewable energy resources.
Brazil has transformed itself into both a major offshore crude oil producer and a global leader in biofuel development.
The country is also investing heavily in clean hydrogen projects and has announced plans to establish 12 hydrogen hubs under its National Hydrogen Programme to support future green energy exports through the early 2030s.
Argentina has expanded oil and gas production through development of the vast Vaca Muerta shale formation, one of the world’s largest unconventional hydrocarbon reserves.
The country is expected to surpass last year’s record energy trade surplus in 2026 due to improved infrastructure and rising oil production.
Argentina posted a record energy surplus of $7.8 billion last year, with exports reaching $11.1 billion while imports declined significantly.
Colombia remains a major exporter of coal, crude oil and natural gas, while Bolivia continues to play an important role as a regional gas supplier.
Energy experts noted that Bangladesh’s growing interest in Latin America is not limited to fossil fuels.
The country is also exploring future cooperation in renewable energy technologies, biofuels and green hydrogen as part of its long-term energy transition strategy.
According to Bangladesh Bank data, Bangladesh spent $6.3 billion on fuel oil imports during the first nine months of FY2025-26, marking a 54.41 per cent increase from the same period a year earlier.
Fuel imports accounted for 11.55 per cent of the country’s total import expenditure of $54.55 billion during July-March, compared with 7.79 per cent in the corresponding period of the previous fiscal year.
In March alone, Bangladesh imported nearly $792 million worth of fuel oil.
The latest nine-month expenditure has already exceeded any previous full-year spending on fuel imports.
During the entire FY2024-25 fiscal year, Bangladesh spent $5.45 billion on fuel imports.
Bangladesh imported 5.74 million tonnes of fuel during July-March FY2025-26, compared with 5 million tonnes during the same period of the previous fiscal year.
Total imports for the whole of FY2024-25 stood at 6.22 million tonnes, while annual national fuel demand is estimated at around 7.2 million tonnes.
More than 92 per cent of refined fuel is imported by the Bangladesh Petroleum Corporation, while only around 1.5 million tonnes of crude oil are refined domestically at Eastern Refinery Limited in Chattogram.
Diplomatic sources said Bangladesh’s existing trade relations with countries such as Brazil, Argentina and Uruguay could help create a foundation for deeper energy cooperation in the future.
Energy expert Professor Dr Ijaz Hossain said, “As the world undergoes major geopolitical and energy transitions, Bangladesh should explore new markets to strengthen energy security while reducing dependence on traditional suppliers.”
He added that Latin American countries could become important long-term partners as many of them possess extensive natural resources and are seeking to diversify export destinations beyond Europe, North America and China.
