BD considering US 'energy export machine' policy

Bangladesh is seriously considering the US new sanction policy called "energy export machine" as part of Washington's ongoing "maximum economic pressure" campaign against Russia and Iran.

By this time, the US has sanctioned more than 50 companies, individuals, and vessels accused of helping Iran export petroleum and Liquefied Petroleum Gas (LPG), including entities tied to shipments that reached Bangladesh, this scenario mounted huge pressure as Bangladesh always search for low cost source for fuel procurement and freight for shipment.

According to official estimates, Bangladesh is expected to import around 5.7 million metric tons of petroleum products annually at a cost of approximately USD 5 billion.

"To meet local fuel demand for 2026, Bangladesh closely monitoring the international oil market as Brent crude prices climbed more than five per cent to $65.98 per barrel following the latest round of U.S. sanctions on Russian oil exports, Bangladesh is prepare to negotiate with global suppliers next month," Power and Energy Adviser Muhammad Fouzul Kabir Khan said Friday.

According to official estimates, Bangladesh is expected to import around 5.7 million metric tons of petroleum products for 2026 at a cost of approximately USD 5 billion. In addition, tenders for importing a similar quantity of refined petroleum for the same period have already been completed.

"The government will initiate government-to-government (G2G) negotiations on November 20, 2025, to import 1.425 million tonnes of crude oil from Saudi Arabia, the UAE, and Kuwait for the first half of 2026 (January-June)," Energy Division official said.

"Bangladesh may face economic challenges due to prolonged volatility in the international fuel market, driven by U.S. sanctions on Russia, a senior government policymaker has warned.

"However, the sanctions could complicate energy procurement for smaller importers if suppliers or shipping firms linked to the network have been active in the region," official said. He also said that Bangladesh also very concerned about the shipment of the fuel oil. As they need to be caution to select the correct ships. 

The US Treasury warned that foreign firms involved in such transactions risk secondary sanctions, including exclusion from the US financial system.

It here be mentioned that in early 2025, the Panama-flagged vessel Gas Dior, owned by Panama-based Aerilyn Shipping Inc, reportedly delivered over 17,000 tonnes of Iranian LPG to Bangladesh for Octane Energy FZCO, which has now also been sanctioned, according to the US Treasury.

Earlier in late 2024, the Comoros-flagged Ada (formerly Captain Nikolas) transported Iranian LPG to several customers in Bangladesh. The ship, owned by UAE-based Sea Ship Management LLC, is now listed as "blocked property" under the sanctions.

Nikolas, carrying 34,000 tonnes of LPG, remained stranded for months due to legal complications. After prolonged negotiations, it was allowed to resume gas transfer operations on 5 September this year. Vessel-tracking data show it remains anchored at Chattogram Port.

"The new sanctions aim to dismantle Iran's "energy export machine" as part of Washington's ongoing "maximum economic pressure" campaign Treasury,"
US Department of the Treasury's Office of Foreign Assets Control (OFAC) announced the measures on Thursday as part of what it called a broader effort to degrade Iran's cash flow and cut off funding to groups Washington designates as terrorist organisations.

A senior official of the Bangladesh Petroleum Corporation (BPC) said the government will initiate government-to-government (G2G) negotiations on November 20, 2025, to import 1.425 million tonnes of crude oil from Saudi Arabia, the UAE, and Kuwait for the first half of 2026 (January-June).