Bangladesh will significantly increase imports of liquefied natural gas (LNG), liquefied petroleum gas (LPG), and refined fuels from the United States from next year as part of the government’s efforts to narrow the trade gap with Washington, a top energy official has said.
“We will procure LNG, LPG, and refined fuels worth about US$1.2 billion annually from the United States starting next year,” said Mohammad Saiful Islam, Secretary of the Energy and Mineral Resources Division (EMRD), in an interview with Just Energy News.
As part of the plan, Bangladesh will import 16 LNG cargoes from the US, including 10 from Excelerate Energy, the secretary confirmed. He said the annual cost of long-term LNG imports from the US would exceed $700 million, while additional LNG will also be sourced from the spot market.
Currently, US-based Chevron earns around $420 million annually from its operations in Bangladesh. However, during tariff negotiations, Washington classifies these revenues under “trade in services,” which is not counted as part of bilateral goods trade, the secretary noted.
Islam also said Bangladesh would expand LPG imports from the US, with private companies playing a major role. “We have already imported more than 200,000 metric tonnes of LPG from the US since February through third-party arrangements,” said Azam J Chowdhury, Director of Omera LPG.
Chowdhury explained that due to the long shipping distance, multiple Very Large Gas Carriers (VLGCs) are required to ensure regular supply. “We are negotiating directly with major US suppliers to secure competitive prices while ensuring supply security. Bangladesh could potentially meet most of its LPG demand from the US if logistical challenges are addressed,” he added.
The government is also considering importing crude oil from the US for local refining. Major groups, including TK Group and Abul Khair Group, are preparing to import crude oil and refine it in Bangladesh. “We are drafting a policy for private refineries under a formula-based product return system. Any violation of the formula will result in immediate closure of the refinery,” Secretary Islam said.
Energy expert Prof. Ijaz Hossain, former chemical engineering professor at BUET, welcomed the move but cautioned about pricing. “Energy imports should be secured at competitive tariffs. If prices are higher compared to other sources, it may lead to public dissatisfaction,” he told Just Energy News.
He also observed that the Bangladesh may seek trade benefits in return, particularly in increasing imports of Bangladeshi garments.
Bangladesh recently secured a 20 percent reciprocal tariff concession on its exports to the US after a series of negotiations.
In 2024, bilateral trade in goods and services between Bangladesh and the US stood at $12.4 billion. Of this, Bangladesh exported goods worth $8.4 billion while importing $2.3 billion, alongside importing $1.8 billion in services and exporting $423 million in services.