Bangladesh Highly Exposed to Hormuz Disruption, Report Warns
Bangladesh faces significant energy security risks due to its heavy dependence on the Strait of Hormuz, according to a new global report.
The study by E3G shows that 100% of Bangladesh’s crude oil imports and about 71% of its liquefied natural gas (LNG) supplies pass through the strait. This places the country among the most exposed economies in the world, alongside Pakistan.
The warning comes as tensions rise in the Middle East involving the United States, Israel, and Iran. Ongoing conflict has already disrupted shipping routes and pushed global energy prices higher.
The report describes Bangladesh as highly vulnerable because of its dependence on imported fossil fuels and limited ability to manage sudden price shocks. Even short disruptions in the strait could lead to supply shortages and rising costs.
The Strait of Hormuz is one of the most critical energy routes in the world, carrying about a quarter of global seaborne oil and more than one-fifth of LNG trade. Any disruption could quickly affect global supply and pricing.
Bangladesh’s internal energy structure adds to the risk. Eastern Refinery Limited remains the country’s only refinery and has not significantly expanded in decades. It can process only a limited portion of national demand, forcing Bangladesh to rely on costly fuel imports.
Plans to build a second refinery have been delayed for years due to funding challenges and policy changes. As a result, the country still lacks the capacity to process key crude types such as Arabian Light and Murban.
Other major economies also depend on the strait, including Japan, Thailand, South Korea, Singapore, India, China, and the European Union.
The report also highlights other global chokepoints such as the Strait of Malacca, Suez Canal, and Panama Canal. Disruptions in any of these routes can quickly trigger supply shortages and price spikes.
Bangladesh has faced similar challenges before. During the 2022 global gas crisis, rising prices forced the country out of the LNG spot market.
Despite expectations of stable global supply in the coming years, experts warn that Bangladesh remains exposed. Without diversifying energy sources and improving refining capacity, the country will continue to face risks from global geopolitical tensions.
Bangladesh Highly Exposed to Hormuz Disruption, Report Warns
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