Govt, BPC to build Eastern Refinery second unit
Chattogram Bureau :
The government and Bangladesh Petroleum Corporation (BPC) are to jointly set up the second unit of the Eastern Refinery. The project cost has increased by more than Tk 6,000 crore due to the long wait for foreign loans. The cost of the project has risen more than threefold over the past 15 years. Therefore, without wasting any more time, the government and BPC have decided to commence work on the project with their own funds.
The total cost will be Tk 42,973 crore, of which the government will provide Tk 30,499 crore and BPC the remaining Tk 12,473 crore.
The second unit of the Eastern Refinery is being constructed with various objectives in mind, including ensuring the security of the country’s energy sector, reducing the cost of fuel oil imports, saving foreign exchange, and creating employment opportunities.
According to concerned officials, the current demand for fuel oil in the country exceeds 7 million tonnes.
The project cost has increased by Tk 6,600 crore in the past eight months due to delays in securing foreign loans.
The existing Eastern Refinery can refine a maximum of 1.5 million tonnes of fuel oil per year, while the rest has to be imported in a refined state.
Refined oil is considerably more expensive than crude oil, causing a significant outflow of foreign exchange.
Increasing the country’s refining capacity by importing crude oil would help save substantial foreign currency and strengthen energy security.
The project has been included in the Annual Development Programme (ADP) for the 2025-26 fiscal year and will be implemented using funds from the government and BPC. Once the ERL-2 project is implemented, the country’s refining capacity will rise to 4.5 million tonnes.
This will help reduce import dependence, lower transportation costs and product prices, and enable the production of environmentally friendly Euro-5 standard fuels.
As a result, the project will play a key role in ensuring the country’s energy security and environmental protection.
It is worth mentioning that the Eastern Refinery refines imported crude oil and produces 17 types of petroleum products, including petrol, octane, diesel, bitumen, LPG, and jet fuel.