The World Bank has approved a $350 million loan to Bangladesh under the Energy Sector Security Enhancement Project. The announcement was made in a press release on Monday, stating that the financing aims to support the country’s energy security and ensure stable power generation.

According to the release, disruptions in global LNG supply and rising prices caused by conflicts in the Middle East have put pressure on Bangladesh’s economy and foreign exchange reserves, as the country relies heavily on imported LNG. The World Bank said the funding will enable Petrobangla to import LNG at affordable prices through long-term contracts, reducing exposure to volatile spot markets.

The project is expected to help maintain steady electricity production, which in turn will support industrialization and job creation by ensuring a reliable energy supply.