Picture: File Photo
Dhaka: The World Bank said on Monday it has approved a $350 million loan to help Bangladesh manage rising fuel import pressures and strengthen energy security after shortages linked to the Middle East war.
The South Asian nation of 170 million people imports 95 percent of its oil and liquefied natural gas (LNG), much of it from the Middle East, where energy shipments through the Strait of Hormuz have been disrupted since the war began on February 28.
Bangladesh relies on imported LNG to meet its electricity demands, with power needs surging as the South Asian country swelters in the summer heat.
"The conflict in the Middle East has pushed up LNG prices and disrupted supply," World Bank chief for Bangladesh Jean Pesme said.
"As a net fuel and gas importing country, Bangladesh faces significant fiscal pressure to maintain its energy security and keep its economy running."
The government has taken several measures to curb fuel consumption, including setting limits on fuel purchases and halting production at most fertiliser factories.
The financing will help cover payments for LNG imports by Petrobangla, the state-owned oil and gas company.
Pesme said the loan would help Bangladesh "maintain a stable supply of LNG imports, which is critical for protecting the economy and people" from energy disruptions.
"By ensuring access to more reliable gas supplies, the additional financing will support electricity generation, industrial activity, and job creation," Pesme said.
