Dhaka seeks Algerian LNG, LPG and petroleum supplies as two countries move to deepen trade and investment ties

Desk Report: Bangladesh and Algeria have agreed to explore broader economic cooperation, with energy security, fertiliser supplies, textile development and bilateral trade emerging as key priorities during a high-level meeting in Algiers.

State Minister for Foreign Affairs Humaiun Kobir held a bilateral meeting with Algerian Foreign Minister Ahmed Attaf in the Algerian capital, where the two sides discussed ways to strengthen cooperation across several sectors, including energy, agriculture, textiles, pharmaceuticals, leather, education and people-to-people exchanges.

The discussions came against the backdrop of Bangladesh`s efforts to diversify its energy supply sources and ensure a stable supply of fuel and other essential commodities to support its economy.

A major outcome highlighted by the Bangladeshi side was the signing of a memorandum of understanding (MoU) on hydrocarbon cooperation between the two countries. The agreement is expected to open new avenues for Bangladesh to import liquefied natural gas (LNG), liquefied petroleum gas (LPG) and other petroleum products from Algeria through a government-to-government (G2G) mechanism.

The two sides also discussed potential joint initiatives to develop refinery facilities and LNG infrastructure, as well as explore coal and gas fields in Bangladesh.

Humaiun Kobir expressed satisfaction over the signing of the MoU, describing the agreement as an important step towards expanding energy cooperation between the two countries.

The Algerian foreign minister said the country`s president had issued immediate directives to prioritise the signing of the agreement in response to Bangladesh`s energy needs, reflecting Algiers` interest in strengthening economic engagement with Dhaka.

For Bangladesh, which relies significantly on imported fuel to meet domestic energy demand, closer cooperation with Algeria could help diversify supply channels and create opportunities for long-term energy partnerships.

Beyond the import of petroleum products, the proposed cooperation could extend to infrastructure development, technical training and knowledge sharing, according to the discussions.

The Algerian Petroleum Institute expressed interest in providing training and knowledge-sharing programmes for Bangladeshi engineers and technicians in the energy sector. Such initiatives could help strengthen the country`s technical capabilities and develop a skilled workforce to support its energy industry.

The potential partnership in refinery development, LNG infrastructure and exploration activities could also create opportunities for technical collaboration and investment, although the scale, financing and implementation of any specific projects would depend on further negotiations between the two governments.

Fertiliser cooperation was another important issue discussed at the meeting.

Humaiun Kobir highlighted Bangladesh`s need to import fertilisers to support its agricultural sector, which remains vital to food security, rural livelihoods and the wider economy.

In response, Ahmed Attaf expressed Algeria`s willingness to collaborate with Bangladesh in this field.

A stronger partnership could help Bangladesh explore additional sources of fertiliser imports and strengthen cooperation in agricultural inputs. Any concrete supply arrangements, however, would require further discussions on quantities, prices, delivery schedules and other commercial terms.

For Bangladesh, diversifying fertiliser supply sources is particularly important because the availability and affordability of agricultural inputs have a direct bearing on production costs, farmers` incomes and food prices.

The two countries also identified opportunities to expand cooperation in textiles, pharmaceuticals and leather.

The Algerian foreign minister sought Bangladesh`s experience in reviving Algeria`s textile industry, recognising the potential value of Dhaka`s experience in developing its garment and textile sectors.

Bangladesh has built a major export-oriented apparel industry over several decades, supported by manufacturing capacity, a large workforce and established links with international buyers. Sharing relevant expertise could create opportunities for industrial cooperation, skills development and technology transfer.

For Algeria, collaboration with Bangladesh could provide access to practical experience in textile manufacturing and industry development. For Bangladesh, the engagement could open avenues for new investment, business partnerships and market expansion.

The discussions on pharmaceuticals and leather could similarly help businesses in both countries explore areas of mutual interest. However, translating these opportunities into commercial gains would require engagement between companies, relevant industry bodies and government agencies.

The meeting also focused on ways to increase bilateral trade and investment, particularly in the energy sector, while broadening commercial engagement in other industries.

The two countries discussed cooperation in education and people-to-people contacts alongside their economic priorities, indicating an interest in developing relations beyond traditional diplomatic engagement.

Regular exchanges between officials and businesses could help identify potential products for trade, investment opportunities and areas where the two economies complement each other.

For Bangladesh, Algeria represents a potential partner in energy and fertiliser supplies, while its own experience in textiles, garments and other manufacturing sectors could offer areas of interest for Algerian businesses.

Realising these opportunities will depend on follow-up negotiations, practical agreements and sustained engagement between public and private sector stakeholders.

The two ministers underscored the importance of holding Foreign Office Consultations regularly to review bilateral relations and advance cooperation on issues of mutual interest.

The next round of consultations is expected to take place in Dhaka soon.

They also emphasised the importance of exchanging high-level visits to consolidate existing relations and maintain momentum in bilateral engagement.

The meeting covered bilateral, regional and multilateral issues of mutual concern and was held in a cordial and friendly atmosphere.

The latest engagement signals a shared interest in taking Bangladesh-Algeria relations towards a more practical economic partnership, with energy security, fertiliser supplies and industrial cooperation at the forefront.

For Bangladesh, the immediate challenge will be to turn the understandings reached in Algiers into concrete supply arrangements, investment commitments and technical cooperation programmes. If followed by effective implementation, the partnership could contribute to diversifying essential imports, strengthening industrial capabilities and expanding economic ties between the two countries.