ME conflict hits BD's power sector: IEA

Bangladesh has emerged as one of the countries hardest hit by the ongoing Middle East conflict, with soaring liquefied natural gas (LNG) prices and supply disruptions forcing fuel conservation measures that have curtailed electricity consumption, even as global power demand continues to accelerate, the International Energy Agency (IEA) said.

In its Electricity Mid-Year Update 2026, released on Thursday, the Paris-based energy watchdog said Bangladesh and Pakistan, both heavily dependent on imported LNG and highly sensitive to fuel price fluctuations, have been particularly affected by disruptions to LNG supplies through the Strait of Hormuz.

"Some emerging economies-particularly Bangladesh and Pakistan, which rely on LNG imports and are much more price-sensitive than many advanced economies-have been acutely affected by the crisis, prompting fuel conservation measures that have curtailed electricity consumption," the report said.

The findings come as Bangladesh continues to grapple with elevated LNG import costs and efforts to manage fuel use following months of instability in global energy markets triggered by the Middle East conflict.

According to the IEA, Bangladesh's electricity demand is expected to remain under pressure this year as higher fuel costs and continued disruptions to global LNG supplies weigh on the country's power sector.

In contrast, global electricity consumption is projected to accelerate, driven by industrial expansion, rising ownership of electrical appliances, increasing use of air conditioning, electric vehicle charging and rapid growth in data centres.

The agency said disruptions to LNG shipments through the Strait of Hormuz have pushed natural gas prices in Asia and Europe to their highest levels since the 2022-23 energy crisis, sharply increasing electricity generation costs and prompting emergency energy-saving measures in several countries.