Bangladesh is expected to secure an additional US$350 million World Bank loan guarantee to support LNG imports amid declining domestic gas production and volatile global energy markets.
The additional guarantee, likely to be finalized in October, would raise the World Bank’s total commitment to US$700 million and help state-run Petrobangla secure commercial financing for LNG imports in 2027.
Petrobangla officials said the International Development Association (IDA) guarantee could help mobilize up to US$2.1 billion in private financing over seven years.
The facility would support standby letters of credit and short-term credit lines through eight selected commercial banks, including international lenders.
The additional guarantee is expected to allow Petrobangla to open vital SBLCs by November 2026 for LNG supplies under long-term contracts, reducing the need for large upfront cash margins and lowering borrowing costs.
The original US$350 million Energy Sector Security Enhancement Project was approved by the World Bank in June 2025 and became effective in early 2026.
