Eastern refinery running out of crude
Eastern Refinery PLC, the country’s only state-owned oil refinery, is facing the risk of halting operations due to a severe shortage of crude oil caused by disruptions in global supply.
The situation has emerged after Bangladesh received no crude oil shipments throughout March, largely due to ongoing instability in the Middle East, raising concerns over the continuity of refinery operations.
Officials at Eastern Refinery warned that, unless fresh supplies arrive soon, operations may have to be suspended within the next four to five days. Several officials involved in day-to-day operations said the refinery is currently running on its last reserves, increasing the likelihood of a production halt as early as next week.
Attempts to contact Managing Director Sharif Hasnat for comment were unsuccessful.
If operations are suspended, it would mark the first shutdown since the refinery began commercial operations in 1968. Established in 1967, Eastern Refinery has an annual refining capacity of around 1.5 million metric tonnes and has historically operated close to, and at times beyond, that level.
Company data show that in the 2023–24 fiscal year the refinery processed more than 1.53 million tonnes of crude oil from a total available stock of about 1.63 million tonnes. On average, the refinery requires more than 127,000 tonnes of crude oil each month to maintain operations, highlighting the scale of its regular demand.
To meet this requirement, the Bangladesh Petroleum Corporation (BPC) typically imports between 100,000 and 150,000 tonnes of crude oil monthly. However, storage capacity of around 225,000 tonnes limits the ability to import larger volumes at one time.
Crude oil transportation is handled by Bangladesh Shipping Corporation, which usually delivers shipments through two vessels each month—one at the beginning and another in the middle of the month.
In March, consignments from Saudi Arabia and the United Arab Emirates were scheduled to arrive on 4 and 20 March respectively, but both shipments were delayed due to the regional conflict.
BPC sources said the last crude oil consignment arrived on 18 February, when the Bangladeshi-flagged tanker Omera Galaxy reached the Kutubdia outer anchorage at Chattogram Port carrying crude oil from the UAE. No further shipments have arrived since then.
Although refinery operations have continued on a limited scale using existing reserves, officials said the remaining stock is expected to last only a few more days. With a daily refining capacity of around 4,100 tonnes, the refinery has already stretched its reserves beyond normal operating levels.
Despite the disruption in crude oil imports, supplies of other petroleum products have continued. Data from the Chattogram Port Authority show that at least 36 vessels carrying LNG, LPG, diesel, furnace oil and other petroleum products have arrived since early March from countries including Malaysia, India and the Maldives.
BPC Secretary Shahina Sultana said additional shipments are currently on the way and expressed hope that the situation would stabilise soon, despite ongoing geopolitical tensions affecting global energy supply chains.
The developing situation highlights the vulnerability of Bangladesh’s fuel supply system and the importance of ensuring a steady flow of crude oil to sustain refinery operations and maintain energy security.
