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The World Bank has approved a $350 million loan to support Bangladesh in addressing rising energy import costs and easing pressure caused by disruptions linked to the Middle East conflict.
Bangladesh, which imports most of its oil and liquefied natural gas (LNG), has faced mounting energy challenges since the outbreak of the regional war and disruptions to shipments through the Strait of Hormuz.
The South Asian nation relies heavily on imported LNG to power electricity generation, particularly during periods of high demand driven by extreme summer temperatures.
World Bank Country Director for Bangladesh Jean Pesme said the conflict had driven up LNG prices and disrupted supply chains, increasing financial strain on the country’s energy sector.
He noted that Bangladesh, as a major fuel-importing economy, faces growing fiscal pressure to maintain stable energy supplies and support economic activity.
“The conflict in the Middle East has pushed up LNG prices and disrupted supply.
“As a net fuel and gas importing country, Bangladesh faces significant fiscal pressure to maintain its energy security and keep its economy running,” Pesme said.
According to the World Bank, the financing will support Petrobangla’s LNG import payments, the country’s state-owned oil and gas company.
Pesme said the funding would help ensure stable gas supplies needed to support electricity production, industrial operations, and employment.
Authorities in Bangladesh have introduced measures to reduce fuel consumption, including restricting fuel purchases and suspending operations at several fertiliser plants.
