The issue is you are using an image that does not cover 360 degrees horizontally and vertically. In other words your image is missing information of the top an bottom (it is missing Zenith and Nadir) and cannot be used with equirectangular projection.
My suggestion is to replace such picture with a proper HDR image that uses a known projection. Then you can set the environment texture in the world and select the appropriate coordinates. (For more info on projections read https://wiki.panotools.org/Panorama_formats)
If you absolutely must use the image on your question you need set the background to use an Image Texture (not an environment texture), set the 2D projection to Tube and use a Vector>Mapping node to control the placement of the image.
Note however that the image will only work if you are looking at it perpendicularly. Trying to see top and bottom will only reveal the limitations of the chosen image.