Bangladesh Braces for Loadshedding as Middle East War Threatens LNG Supply

The government has issued nationwide energy conservation directives and warned of possible power rationing as the Hormuz crisis cuts off Bangladesh’s primary LNG supplier and puts up to 1,800 megawatts of electricity generation at risk.

Bangladesh’s government convened an emergency meeting at the secretariat on Wednesday as the closure of the Strait of Hormuz following US and Israeli strikes on Iran sent shockwaves through the country’s energy supply chain. Power and Energy Minister Iqbal Hassan Mahmood Tuku chaired the session, after which the ministry issued a set of conservation directives and warned of possible short-term disruptions to power and fuel supply affecting electricity generation and fertiliser production.

Energy Secretary Mohammad Saiful Islam confirmed that Bangladesh’s long-term LNG contracts are largely tied to Middle Eastern suppliers — particularly QatarEnergy, which has halted production following Iranian drone strikes on its Ras Laffan facilities. “Our largest long-term LNG supplier, QatarEnergy, ships via the Strait of Hormuz, which is worrying for us given the current situation,” he told The Business Standard. “If supply is disrupted, we will have to reduce gas supply to power plants.”

Supply Crisis: The Numbers on the Ground

The strain on Bangladesh’s power sector is already visible. At least 30 out of 143 power plants have stopped producing electricity due to gas or liquid fuel shortages. The Bangladesh Power Development Board (PDB) is currently supplying between 12,000 and 13,000 megawatts — against a peak summer demand of 18,500 MW. To stretch reserves, the government has instructed Petrobangla to reduce gas supply to power plants and fertiliser factories by up to 200 million cubic feet per day (mmcfd), reducing electricity output further. Load-shedding has already begun in parts of the country.

Bloomberg reported on Thursday that Bangladesh is also preparing to reduce fuel deliveries to petrol pumps as part of efforts to stretch existing reserves. BPC Chairman Rezanur Rahman confirmed that six-month fuel oil contracts remain secured until June, with over 20 days of stock available and additional cargoes in transit — providing a temporary buffer while the government seeks alternative supply sources.

Bangladesh Energy Snapshot — 5 March 2026

Government Conservation Directives

Following the emergency meeting, the Ministry of Power, Energy and Mineral Resources issued directives covering households, businesses and government offices. The ministry stressed it would exercise “maximum caution” to avoid disrupting citizens during the ongoing Ramadan period.

A Crisis That Exposes Structural Vulnerability

Experts at a discussion jointly organised by the Institute for Energy Economics and Financial Analysis (IEEFA) and Zero Carbon Analytics on 5 March warned that the crisis underscores Bangladesh’s dangerous dependence on imported fossil fuels. Approximately 90% of Bangladesh’s crude oil, refined products and LNG arrive via the Strait of Hormuz. About 40% of annual LNG imports come from Qatar alone, and most long-term LNG contracts are priced off Brent crude — meaning the current oil price surge will raise import costs even for contracted volumes.

IEEFA analyst Shafiqul Alam warned that if the crisis lasts over two weeks, losing around 900 mmcfd of LNG daily could severely destabilise gas supply to industries and power plants. Dr. Ijaz Hossain, a professor of energy at BUET, told UNB: “Impact on both energy supply and electricity generation in Bangladesh would be affected vastly as there is no immediate alternative.” Experts urged the government to fast-track rooftop solar deployment and accelerate domestic gas exploration, noting Bangladesh’s power sector is already carrying approximately Tk 460 billion in debt to power plants.