Bangladesh Adopts Strategic Approach to Weather Global Fuel Shortages

QatarEnergy has extended its force majeure notice, suspending liquefied natural gas (LNG) supplies to several Asian nations, including Bangladesh and Pakistan, until November. Italian energy firm Edison confirmed that shipments from Qatar remain halted following an April military conflict between the US and Iran that severely disrupted navigation through the Strait of Hormuz. Edison further reported that it will not receive any Qatari LNG cargoes before December, forcing reliance on American suppliers to bridge the gap.

The geopolitical conflict has crippled Qatar’s energy export capacity. According to market intelligence firm ICIS, Qatar’s LNG exports plummeted from 509 cargoes last August to just 18 this August, marking a dramatic collapse of nearly 96 percent. Edison confirmed that six additional shipments were canceled, bringing its total undelivered cargoes from Qatar to 35. Consequently, the Italian company has been forced to rely heavily on US suppliers to meet obligations under its 25-year contract signed in 2009 for 6.4 billion cubic meters of annual gas.

Despite these global shipping disruptions across both the Strait of Hormuz and the Bab-el-Mandeb Strait, international oil markets have avoided a systemic collapse. Saudi Arabia has strategically rerouted oil via pipelines away from Iranian influence, while production has expanded in the United States, Venezuela, Brazil, Guyana, and Canada, adding nearly 2 million barrels per day. Combined with subdued global demand, these supply shifts have cushioned energy markets against severe price spikes, stabilizing crude futures despite ongoing maritime volatility.

Bangladesh has maintained relative stability through strategic management and alternative sourcing, even as domestic refining experienced setbacks. Data from the Bangladesh Petroleum Corporation (BPC) indicates annual fuel oil imports of 6.6 to 6.8 million tonnes. Following the conflict, Eastern Refinery’s daily output dropped from 4,500 tonnes to 3,000-3,500 tonnes, and the product variety fell from 16 to 8-10 items. After Saudi supply interruptions temporarily halted operations in April, the facility conducted routine maintenance and is now considering processing Malaysian crude oil.

To prevent a major energy shortage, Bangladesh secured pricier alternative shipments to stabilize its domestic energy reserves. Addressing national supply concerns, the State Minister for Power, Energy, and Mineral Resources assured that the country faces no major fuel supply concerns through December. Reinforcing this outlook, a senior analyst at an international energy consultancy noted that crude prices are unlikely to breach $150 per barrel in the near term, as Brent crude futures dropped below $101 per barrel.