World Bank lends $350m to support LNG imports

The World Bank (WB) has extended $350 million in additional loan support to help Bangladesh secure sufficient supplies of liquefied natural gas (LNG) and keep power production costs at tolerable level.

The new loan tops up an existing WB-supported energy security project and was approved on Friday, according to a World Bank press release issued Monday.

It comes amid continued global energy market volatility sparked by the Iran war and signs of renewed hostilities.

The new $350 million loan adds to the existing $350 million package titled “Energy Security Enhancement Project,” which was approved on 18 June last year with a deadline set for 31 December 2031.

Jean Pesme, World Bank country director for Bangladesh and Bhutan, said Bangladesh relies heavily on Middle Eastern LNG supply, which has been disrupted by the Iran war.

Prices have also been hiked putting strain on budgets in import-depended countries like Bangladesh, it said.

The new support would help the government and the country tide over the crisis by purchasing LNG on long-term contracts at elevated rates, the multilateral lender said.