The government of Bangladesh is strategically seeking to reduce its heavy reliance on Middle East-based fuel supplies by initiating government-to-government (G2G) diesel import agreements with Kazakhstan and Nigeria. These diplomatic efforts cover both short-term and long-term contracts.
The move comes as ongoing tensions surrounding Iran have disrupted shipping through the Hormuz Strait, causing delays in fuel shipments and putting pressure on the traditional supply routes from the Middle East. Officials say diversifying import sources has become a government priority to ensure energy security.
The Energy and Mineral Resources Division (EMRD) formally wrote to the Ministry of Foreign Affairs regarding Nigeria on March 19 and Kazakhstan on March 24, requesting diplomatic support for G2G negotiations.
Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) has approved the direct procurement of 300,000 tons of diesel. Under this plan, the energy department will import 100,000 tons from one company and 200,000 tons from another.
Deepening Crisis and Strategic Need
Bangladesh’s current fuel situation has been stressed due to delays in 125,000 tons of diesel and 25,000 tons of jet fuel shipments in March. Long-term suppliers have invoked force majeure, further delaying deliveries.
A letter sent to Kazakhstan highlights that “Middle East tensions have created global oil market volatility. To ensure long-term energy security and maintain strategic reserves, Bangladesh is actively working to diversify import sources.” Copies of the letter were sent to the Bangladeshi Ambassador in Russia to coordinate with Kazakh authorities.
Officials note that Kazakhstan’s stable production and diversified export routes make it an attractive partner for Bangladesh’s long-term energy strategy. The country’s state-owned company KazMunayGas plays a key role in fuel production, refining, and exports. Opportunities for LPG imports are also being explored. Bangladesh seeks both spot shipments and long-term contracts to mitigate short-term shortages. EMRD emphasized, “Rapid action is critical given the current global energy situation.“
Nigeria as an Alternative Source
On March 19, EMRD contacted Nigeria, identifying the state-owned NNPC as a potential supplier. The Bangladesh High Commission has begun preliminary discussions with Nigeria’s petroleum and gas authorities. EMRD requested formal G2G engagement via the Ministry of Foreign Affairs, noting the need to “establish a platform for technical and commercial discussions with BPC while initiating G2G cooperation with the Nigerian government.“
Persistent Supply Disruptions
Disruptions in the Hormuz Strait have affected nearly 20% of global oil and gas transportation. In March, Bangladesh Petroleum Corporation (BPC) could not execute planned imports of diesel, jet A-1 fuel, octane, and high-sulfur fuel oil. Short-term fuel rationing was briefly implemented but later withdrawn after reassurances.
The ongoing crisis demonstrates that over-reliance on a specific region is risky, prompting Bangladesh to diversify supply sources. The EMRD stressed that quick steps to secure reliable and multiple fuel sources are highly commendable.
This initiative indicates a strategic shift in Bangladesh’s energy policy toward building a more stable, diversified, and resilient fuel supply system.
