BD-US set to ink long-term energy deal amid ME crisis

Bangladesh is set to sign a long-term energy engagement with the United States to ensure future energy security and stability, while also seeking assistance to address the ongoing energy crisis caused by the conflict in the Middle East, said Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmood Tuku on Wednesday.

The minister said discussions focused on long-term energy supply issues and strategies to manage the current situation efficiently. He noted that the government has ordered tighter monitoring in border areas to prevent fuel smuggling and has directed the Bangladesh Petroleum Corporation (BPC) to ration diesel supplies in affected regions.

Referring to the impact of the Middle East war, Mahmood said Bangladesh currently has 15 days of fuel storage and is considering procuring LNG from the spot market. 

"As long as the conflict remains, the pressure on energy will continue. We are trying to run the system efficiently with what we have," he added.

Highlighting Bangladesh's dependence on imported fuel, Mahmood explained that most of the country's 109 oceangoing vessels, including bulk carriers and oil tankers, rely on the Gulf region and the Strait of Hormuz, where the ongoing conflict has disrupted fuel imports and shipping.

He urged citizens to use electricity and fuel sparingly, limiting private vehicle use and avoiding unnecessary lighting, stressing that efficient management of existing resources is the only viable option until the supply system stabilizes.

The discussions with US Assistant Secretary of State for South and Central Asian Affairs, Paul Kapur, also included strategies for optimizing energy resources amid global uncertainties.