Bangladesh is facing a pressing energy challenge as tensions in the Middle East disrupt key oil supply routes, forcing the country to explore alternative pathways to secure its crude imports.
Around 100,000 tonnes of crude oil destined for Bangladesh remain stranded at Saudi Arabia's Ras Tanura port due to restrictions on the Strait of Hormuz amid ongoing US-Israel-Iran tensions. To address the disruption, Saudi oil giant Aramco has offered an alternative route that bypasses the blocked strait via the Red Sea.
Under this option, Bangladesh would pay a wheeling charge of approximately $0.53 per barrel, totaling around $400,000 for the shipment, according to the Bangladesh Petroleum Corporation (BPC).
* Aramco offers Red Sea alternative for stranded crude
* Alternative route would cost approx $400,000 for the shipment
* Dhaka wrote to Iranian embassy for passage through Hormuz
"We have received the offer, but no decision has been made yet," said BPC Chairman Md Rezanur Rahman, signaling that the government is carefully evaluating both economic and strategic considerations.
Bangladesh imports roughly 1.4 million tonnes of crude oil annually for refining, evenly split between Saudi Aramco's Arabian Light crude and Abu Dhabi National Oil Company's Murban grade under long-term agreements. The current disruption has delayed shipments already loaded onto Bangladesh Shipping Corporation-chartered vessels.
Global oil markets have reacted to the uncertainty, with Brent crude rising above $103 per barrel and US crude approaching $96 per barrel, reflecting concerns over potential supply shortages in the Hormuz corridor, a critical passage for almost a fifth of global oil trade.
At the center of the alternative route is Saudi Arabia's East-West Crude Oil Pipeline, known as Petroline. Stretching roughly 1,200 kilometres, the pipeline links eastern oil fields to Red Sea export terminals at Yanbu, allowing shipments to bypass the Strait of Hormuz entirely. Originally built in the 1980s and later expanded, the system now has a capacity of up to 7 million barrels per day.
Aramco has increased exports through the Red Sea, with CEO Amin Nasser stating, "We should be reaching capacity in a couple of days," noting that export volumes have more than doubled via this route.
However, the alternative path is not risk-free. Crude shipments from Yanbu must pass through the Bab el-Mandeb strait, another strategic chokepoint that has experienced security threats in recent years, particularly due to tensions in Yemen. Although attacks have paused recently, analysts warn that vessels using this corridor remain potentially vulnerable.
Bangladesh has also sought diplomatic channels, reportedly writing to the Iranian embassy to explore the possibility of passage through the Strait of Hormuz for its shipments.
Energy experts say the situation highlights the need for Bangladesh to diversify supply routes and strengthen strategic reserves to withstand geopolitical shocks. With rising global prices and supply lines under pressure, Dhaka faces a critical decision: accept higher transportation costs or risk delays that could impact national energy security and the broader economy, vessels chartered by Bangladesh Shipping Corporation.
Meanwhile, global oil markets have reacted sharply to the uncertainty. Brent crude prices have climbed above $103 per barrel, while US crude has risen close to $96, reflecting concerns over supply disruptions in one of the world's most critical oil transit routes.
At the center of the alternative supply plan is Saudi Arabia's East-West Crude Oil Pipeline, also known as Petroline. Stretching approximately 1,200 kilometres across the country, the pipeline connects oil fields in the eastern region to export terminals on the Red Sea coast, allowing shipments to bypass the Strait of Hormuz.
Originally built during the 1980s and later expanded, the pipeline now has a capacity of up to 7 million barrels per day. Saudi Aramco has already increased its use of the route, shifting shipments from the Persian Gulf to the Red Sea.
"We should be reaching capacity in a couple of days," Aramco Chief Executive Officer Amin Nasser said recently, indicating that export volumes through the route have significantly increased.
Under this arrangement, oil tankers would load crude at the Red Sea port of Yanbu instead of traditional Gulf terminals. However, the alternative route is not without risks.
Ships leaving the Red Sea must pass through the Bab el-Mandeb strait, another strategic chokepoint that has experienced security threats in recent years, particularly linked to tensions in Yemen. Although attacks have subsided recently, experts warn that vessels in the area may still face risks.
In parallel, Bangladesh has also taken diplomatic steps, reportedly contacting the Iranian embassy to seek passage through the Strait of Hormuz for its shipments.
Energy analysts say the situation underscores the importance of diversifying supply routes and strengthening strategic reserves to manage future geopolitical disruptions.
With rising oil prices and supply chains under pressure, Bangladesh now faces a critical decision-whether to absorb higher transportation costs or risk delays that could affect its energy security and broader economy.
