Sources say that Bangladesh has secured diesel supplies amid major disruptions in energy supply
After the U.S. - Israel war 'on 'Iran, which disrupted shipments to garments and other industries, Bangladesh began receiving diesel from suppliers such as?China, India, officials said. The country has enough fuel for about a?month worth of demand.
As the Middle East oil trade is severely disrupted by the war against Iran, South Asia, a nation of approximately 175 million people that relies heavily on imported energy, has implemented fuel rationing, restricted diesel sales, and closed its universities. Bangladesh, which is the second largest clothing exporter in the world after China, has already complained that it does not have enough diesel for its backup generators when power supply is cut.
Mahmud Hasan, President of the Bangladesh Garment Manufacturers?and Exporters' Association, stated that power cuts have doubled, reaching up to five hours per day, since the beginning of the war on February 28.
He said: "When the power goes out, we have to run standby generators with diesel. But, we can't get enough diesel any more, and that's causing us problems." The state-run Bangladesh Petroleum Corporation is receiving 60,000 metric tonnes of diesel from 3 traders. Another 90,000 metric tonnes are scheduled to arrive later this month.
BPC officials said that a 27,000 metric-ton cargo of diesel from PetroChina arrived in Chittagong on Monday. A cargo of 28,000 tons from Vitol was waiting at the port’s outer anchorage.
A pipeline connecting India's Numaligarh Refinery to the United States also supplies around 5,000 metric tonnes of diesel. Officials have confirmed that talks are underway to secure 30,000 metric tonnes of diesel from Indian Oil.
BPC officials said: "We are arranging for another month of supplies."
BPC didn't immediately respond to comments.
Bangladesh usually needs around 380,000 metric tonnes of diesel per month. However, since the rationing started, officials have estimated that current monthly requirements are approximately 270,000 metric tonnes.
Officials stated that securing refined fuel cargoes was relatively easy, as most traders didn't rely on the disrupted Gulf Shipping Routes used for crude oil shipment. Prices have risen as a result of the Middle East Crisis's intense volatility, officials said.
Bangladesh imports around 1.4 million tons of crude oil per year to fuel its refineries, under long-term agreements with Saudi Aramco (SARAMCO) and Abu Dhabi National Oil Company(ADNOC).
The 'Strait Of Hormuz' is the only way that crude oil shipments from Saudi Aramco and ADNOC to Bangladesh can pass through. Officials said that a cargo of Aramco weighing about 100,000 tons was already delayed in the Gulf because of the current crisis. Bangladesh has already been forced to stop operations at four out of five state-run fertilizer factories due to severe gas shortages. Available gas was diverted to power plants. (Reporting and editing by Kate Mayberry; Ruma Paul)
(source: Reuters)
