DHAKA, Mar 12: Amid increasing fears of a potential energy crisis due to the ongoing war in the Middle East, Bangladesh has significantly amped up its energy imports from India and China to ensure uninterrupted supplies.
Officials said Dhaka has urged Beijing to ensure diesel deliveries under an existing long-term arrangement after reports of export restrictions from some Chinese refineries. The issue was discussed at a meeting on March 10. The meeting was attended by senior Bangladesh officials and the Chinese Ambassador in Dhaka, Yao Wen.
China’s State trading arm Unipec is scheduled to supply three diesel cargoes of 30,000 tonnes each between March 13 and 29 to the Bangladesh Petroleum Corporation (BPC). Officials said there has been increasing uncertainty due to disruptions caused by the conflict.
Apart from Beijing, Dhaka has also turned to India to stabilise supplies, with over 5,000 tonnes of diesel arriving from New Delhi, just a day after another shipment of more than 27,000 tonnes was delivered.
BPC chairman Muhammad Rezanur Rahman said another 5,000-tonne consignment was expected through the 131 km India-Bangladesh Friendship Pipeline linking Siliguri in India to Parbatipur in northern Bangladesh.
The imports fall under a supply agreement with India’s Numaligarh Refinery Limited covering January-June, under which Bangladesh is to receive 180,000 tonnes of diesel annually. Of this, 120,000 tonnes have already been confirmed, with an option to import an additional 60,000 tonnes depending on demand.
The pipeline, inaugurated in March 2023 during the Awami League government, can transport up to 200,000 tonnes of diesel a year.
At the same time, the energy sector is facing financial pressure. The Bangladesh Independent Power Producers’ Association (BIPPA) has warned of Tk14,000 crore (USD 1.14bn) in unpaid bills owed by the Bangladesh Power Development Board.
BIPPA president David Hasanat said the dues must be cleared so that companies can open Letters of Credit to import fuel and keep heavy-fuel-oil power plants running during the summer.
Energy advisor Aninda Islam Amit said the government was working to resolve the crisis. Despite volatility in global energy markets, officials said there were no immediate plans to raise fuel or electricity prices.
Earlier this month, state-owned distributors Padma Oil, Jamuna Oil and Meghna Petroleum proposed a price increase to discourage panic buying. The government, however, says reserves are sufficient to maintain normal fuel and power supplies until May.
(UNI)
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