Ctg to have another oil refinery unit
Anisul Islam Noor :
The government plans to appoint a consultant soon for implementing second Eastern Oil Refinery unit project in Chittagong. The new unit will have a capacity of refining 1.5 million tonnes of crude oil annually, Energy Ministry official said.
The Ministry is now preparing terms of reference to appoint the consultant that would be placed to the ministry at the end of this month, the official said.
He said, the world famous companies, including the Chinese and the Japanese firms, have already submitted proposals to the ministry showing their interests in the project.
The government will implement the $1.15 billion refinery project under Special Power Act through negotiation. Different international financial bodies including Asian Development Bank (ADB), International Finance Corporation (IFC), Japan International Cooperation Agency (JICA) and Government of Bangladesh (GoB) will finance the project.
The project implementation firm will mobilise fund under Export Credit Agency (ECA).
Eastern Refinery Limited (ERL), the lone refinery unit of the country, is now refining 1.3 million to 1.5 million tones of crude oil, which can meet 30 percent of the country’s total fuel consumption, he said. But the country wants to increase the capacity of refining 75 percent of its required fuel, equivalent to over three million tonnes of petroleum fuels to ensure country’s energy security, he opined.
The ERL is now saving Tk 650 crore annually for refining 1.3 million tonnes of crude oil with the existing ERL plant, official said.
Mentionable, the ERL is now getting Tk 67 as service charge by refining each barrel of petroleum fuel. BPC is saving between Tk 6 and Tk 7 per litre
through refining imported crude oil instead of importing refined oil. Besides, the BPC has already signed a Memorandum of Understanding with China Petroleum Pipeline Bureau (CPPB) to set up Single Point Mooring (SPM).
The cost for SPM is estimated for US dollars $446 million.
About the prospect of the SMP, an ERL official conditioning anonymity said that the proposed SMP has the capacity to unload imported petroleum fuels in two days instead of 11 days at present.
He said, the government would be able to recover the investment required for setting up the SPM in five years.
He said, the project has been delayed due to fund crisis as its cost has been increased to $446 million from the previous estimation of $129 million.
ERL has revised the design of the SPM project, which included installation of a 96-kilometer long pipeline instead of 70-kilometer between Moheshkhali and Chittagong, the official added. Besides, the government will install a permanent depot to store imported fuel, he said.
The government plans to appoint a consultant soon for implementing second Eastern Oil Refinery unit project in Chittagong. The new unit will have a capacity of refining 1.5 million tonnes of crude oil annually, Energy Ministry official said.
The Ministry is now preparing terms of reference to appoint the consultant that would be placed to the ministry at the end of this month, the official said.
He said, the world famous companies, including the Chinese and the Japanese firms, have already submitted proposals to the ministry showing their interests in the project.
The government will implement the $1.15 billion refinery project under Special Power Act through negotiation. Different international financial bodies including Asian Development Bank (ADB), International Finance Corporation (IFC), Japan International Cooperation Agency (JICA) and Government of Bangladesh (GoB) will finance the project.
The project implementation firm will mobilise fund under Export Credit Agency (ECA).
Eastern Refinery Limited (ERL), the lone refinery unit of the country, is now refining 1.3 million to 1.5 million tones of crude oil, which can meet 30 percent of the country’s total fuel consumption, he said. But the country wants to increase the capacity of refining 75 percent of its required fuel, equivalent to over three million tonnes of petroleum fuels to ensure country’s energy security, he opined.
The ERL is now saving Tk 650 crore annually for refining 1.3 million tonnes of crude oil with the existing ERL plant, official said.
Mentionable, the ERL is now getting Tk 67 as service charge by refining each barrel of petroleum fuel. BPC is saving between Tk 6 and Tk 7 per litre
through refining imported crude oil instead of importing refined oil. Besides, the BPC has already signed a Memorandum of Understanding with China Petroleum Pipeline Bureau (CPPB) to set up Single Point Mooring (SPM).
The cost for SPM is estimated for US dollars $446 million.
About the prospect of the SMP, an ERL official conditioning anonymity said that the proposed SMP has the capacity to unload imported petroleum fuels in two days instead of 11 days at present.
He said, the government would be able to recover the investment required for setting up the SPM in five years.
He said, the project has been delayed due to fund crisis as its cost has been increased to $446 million from the previous estimation of $129 million.
ERL has revised the design of the SPM project, which included installation of a 96-kilometer long pipeline instead of 70-kilometer between Moheshkhali and Chittagong, the official added. Besides, the government will install a permanent depot to store imported fuel, he said.