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China to give $554m for Single Point Mooring project
State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Sunday said coordinated initiatives would ensure energy security in the country. "We have given emphasis on easy availability of crude oil by using multi- lingual LNG, LPG or coal," he said while speaking as the chief guest at the Framework Agreement ceremony at NEC-2 conference room at Sher-E-Banglanagar in Dhaka. Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and Chinese Ambassador to Bangladesh Ma Mingqiang signed the deal for financing the "Installation of Single Point Mooring (SPM) with Double Pipeline." The state minister said it is necessary to adopt infrastructural master plan or economic development master plan for the country. Seeking more Chinese assistance for implementation of various projects undertaken by the DPDC or PGCB, Nasrul said the Dhaka city would be brought under uninterrupted power supply by implementing the DPDC`s projects. He said the opportunity has been created for investment of $ 25 billion in electricity and energy sector in Bangladesh. The state minister also sought Chinese support for developing a disaster infrastructure rescue team, adding, "The amount of foreign aid in the SPM project is $ 554.40 million, out of which the flexible loan amount is US $ 82.56 million and the amount of Preferential Buyer`s Credit (PBC) is $ 467.84 million." Among others, BPC chairman Abu Hena Mohammad Rahmatul Munim was also present.
15-yr deal likely with India to import diesel thru’ pipeline
September 13, 2017 Wednesday 1:59 PM By UNB
A move is underway to sign a 15-year deal with India to annually import 250,000 tonnes to 400,000 tonnes of diesel from the neighbouring country through a cross-border pipeline. After a long discussion between Dhaka and New Delhi, the Bangladesh government has finally decided to sign the contract with India to import petroleum, according to official sources. They said the Cabinet Economic Affairs Committee approved a proposal in principle in this regard on August 23. The whole consignment of petroleum will come through a cross-border pipeline from India`s Numaligarh refinery, located in Gloaghat in north-eastern Indian state of Assam, while Bangladesh will receive it at Parbatipur petroleum fuel depot in north-western district of Dinajpur. To facilitate the import, both the neighbours have to build a 130-km cross-border pipeline, named as `Indo-Bangla Friendship Pipeline`, of which a 125-km one is to be laid in Bangladesh while only 5-km in India. Official sources said though most part of the proposed pipeline is to be laid in Bangladesh part, Indian government will provide about Rs 303 crore as a grant to build the pipeline project in Bangladesh portion. However, Bangladesh will build and operate the pipeline in its part while India will build and operate the pipeline in its portion. While promising the grant for the pipeline, the officials said New Delhi tagged a pre-condition that Dhaka has to first sign a `Sales & Purchase Agreement (SPA) to receive the grant. In compliance with the New Delhi`s condition, the Cabinet Economic Affairs Committee, the highest policymaking body in making economic decision, especially any big purchase without tender, approved a proposal of the Energy Division to sign the SPA. Bangladesh Petroleum Corporation (BPC) officials said once they received the copy of the cabinet body`s approval, they will move to sign the SPA. "We hope, the SPA will be signed within a month or two and then the initiative for the construction of pipeline will be taken. It`ll take at least two years to complete the construction," a top official of the BPC told UNB requesting anonymity as he is not authorised to speak on the issue. An official document obtained by UNB revealed that in the SPA, the `premium` or transportation cost of the petroleum was fixed at $5.5 per barrel of diesel and the price of petroleum will be fixed on the basis of price on the international oil market. Bangladesh now imports diesel with a premium of $4.4 per barrel. The documents also reveal that Bangladesh will annually import 250,000 metric tonnes in the first three years, 300,000 mt annually in the 4th to 6th years, 350,000 mt annually in the 7th to 10th years and 400,000 mt annually from the 11th to 15th years.
Category: Petroleum
No fuel price cut for now
May 8, 2017 Monday 2:45 PM By News Desk, energynewsbd.com
State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Sunday said the government has no plan to reduce oil prices for now as Bangladesh Petroleum Corporation (BPC) may face a loss in the next fiscal year if international market prices continued to rise. Reading out scripted answers following lawmakers` queries in parliament, he said the taka to dollar exchange rate was also increasing regularly. Global market prices have been rising for the last one year, he said, adding that the lowest price was seen in January 2016 when the average cost per barrel was US$ 33.85, rising to US$ 66.03 in April 2017. He said BPC still owed the government Tk 27,419.81 crore in loans as it incurred losses earlier selling fuel at subsidised rates. The government slashed prices twice, on April 1 and 25, last year following a slump in the international market, he noted.
Category: Petroleum
Deal signed for setting up of a 3,000 barrel per day capacity Catalytic Reforming Unit
February 15, 2017 Wednesday 3:49 PM By News Desk, energynewsbd.com
State-owned Sylhet Gas Field Limited (SGFL) and a consortium of Indonesia-based PT ISTANA KARANG LAUT and local company Energypac Power Generation Limited have recently signed an agreement for setting up of a 3,000 barrel per day capacity Catalytic Reforming Unit (CRU) at Rashidpur in the district of Habiganj. Operations Director of PT ISTANA KARANG LAUT Phillippe Supper and Company Secretary of SGFL Md Showkat Alam Quadri signed the deal on behalf of the respective parties at a program in Dhaka, said a press release. The plant facilities schedule for completion in two years’ time would convert petrol into octane. The country will attain self-sufficient in the fulfillment of octane demand on completion of the project. The total project cost is about Tk 500 crore and being financed by SGFL’s own source. Another 4,000 barrel/day capacity condensate fractionation plant is being built in Rashidpur, which will be fed by the Chevron-run Bibiyana gas field. Petrol to be produced by the existing 3750 barrel/day and later on 4,000 barrel/day condensate fractionation plant will be fed to the catalytic reforming unit for converting the petrol into octane. Once completed, it will produce about 2,710 barrel of octane (octane no 95+) and 25 tonne of liquefied petroleum gas (LPG) daily from condensate.
Category: Petroleum
Govt going to reduce fuel price again
February 5, 2017 Sunday 12:20 PM By Staff Correspondent, energynewsbd.com
The government is going to adjust the prices of four different petroleum fuels to reflect the downscaling in global oil price. The price of petrol and octane will be reduced by 5 per cent and 8 per cent for kerosene and diesel per litre. A proposal will be send to Ministry of Power, Energy and Mineral Resources from the Ministry of Finance within this week. After reviewing, the proposal will send for the nod of Prime Minister, said an official of Ministry of Finance. The new prices of petrol will be Tk 81.70, octane Tk 84.55, kerosene and diesel Tk 60. Jet fuel and furnace oil price will be out of this reduction. If the proposal of Ministry of Finance got final approval especially if the price of diesel and kerosene reduced then the poor, middle class and villagers will be more benefited. The subsidiary in electricity production will be reduced if diesel price reduced. Farmers and electric pump users will be specially benefited.  Ministry of Finance already made a synopsis about the fuel price reduction where the new proposed petrol price will be Tk 81.70 instead of present selling price Tk 86.00 reducing by Tk 4.30. Octane will be Tk 84.55 instead of present price Tk 89.00 reducing by Tk 4.45. The present price of both kerosene and diesel is Tk 65.00 and new prices will be Tk 60 reducing by Tk 5.00. Despite the proposed reduction of four different petroleum fuel prices, Bangladesh Petroleum Corporation (BPC) will be profit trend. BPC will earn Tk 116 crore, Tk 125 crore, Tk 335 crore and Tk 1,279.34 crore yearly from selling petrol, octane, kerosene and diesel respectively total amounting 1,854.72 crore from the above four petroleum fuels. The synopsis was made after analyzing the International oil market trend. According to recent report of Bloomberg, the oil price will be stable in 2017despite the downscaling in global oil price in last 3 years. Fuel price specially Brent Crude Oil will be $ 58 per barrel. Gulf Research Center assumes the price will be around $ 60 per barrel through the current year. According to The World Bank oil price will be $ 55.2 per barrel. Assuming the price at $ 60 per barrel, BPC will make Tk 3.22 profit from the sale of per litre diesel after reducing present price by 8 per cent and Tk 10.56 from kerosene.    
Category: Petroleum
BPC signs deal with Technip for ERL unit-2
January 18, 2017 Wednesday 10:25 PM By Staff Correspondent, energynewsbd.com
The state-run Bangladesh Petroleum Corporation (BPC) on Wednesday signed a deal with French company Technip to prepare the Front End Engineering Design (FEED) for a refinery unit with a capacity of processing three million tonnes of crude oil every year. The deal was signed at Power, Energy and Mineral Resources Ministry at the Secretariat under the Speedy Supply of Power and Energy (Special Provisions) Act 2010. Technip, which installed the first unit of Eastern Refinery Limited (ERL), a subsidiary of BPC, with a capacity to process 1.5 million tonnes per annum- in Chittagong in 1968, was also given the task of designing the second unit. The government has already signed a memorandum of understanding with Technip for the unit. The project namely FEED services for the installation of ERL unit-2 cost is Tk 371.81 crore. As per deal, BPC will pay Tk 257 crore for the task. Technip will prepare the design and relevant documents within eight months. Once installed, the unit is expected to refine 4.5m tonnes of petroleum annually. Presently, ERL refines 1.3m tonnes of crude oil annually though its capacity of 1.5m tonnes. The BPC annually imports nearly 5m tonnes of crude and refined oil at an average cost of Tk 50,000 crore.
Category: Petroleum
Oil price will be not be reduced: Nasrul
January 18, 2017 Wednesday 10:10 PM By Staff Correspondent, energynewsbd.com
The government will not reduce the prices of fuel oil in local market, the state minister for power, energy and mineral resources Nasrul Hamid has said. Talking with the journalists at the sideline of a contract signing ceremony at the secretariat on Wednesday, Nasrul said that the price of fuel oil in the international market is on the rise and the World Bank has forecasted the trend will continue in next one year. In October, last year, the World Bank raised its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to limit production after a long period of unrestrained output. Oil prices have increased in recent weeks. Brent crude futures, the international benchmark for oil prices, were up 17 cents $55.64 a barrel today, according to Reuters. Meanwhile, talking with the journalist at the secretariat, Finance Minister Abul Maal Abdul Muhit said, he is not sure about whether the government has taken the decision to reduce the price of oil or not. Tofael Ahmed, the Commerce Minister who was also beside him at that time said that to his knowledge, the government is yet to make any decision about oil price reduction. “As far as I know, there has been no decision taken in this regard and there has been no discussion about this in the last cabinet meeting with the Prime Minister.” Earlier on November 20, last year, Finance Minister Muhith said the government decision to reduce again the prices of petroleum oils would be taken in mid-December. In December, Finance Minister Muhith announced that the government may lower the prices of fuel oil by a “small margin” in January. He however said that time since price of fuel oil increased in the international market in December, the rate of reduction will not be much.” In April, Bangladesh cut the prices of octane and petrol by Tk 10 per litre and diesel and kerosene by Tk 3, with the intention of passing on the benefits of low prices on the international market to consumers in the country. At that time, the government said the cut was part of a government plan to reduce the fuel prices in phases.
Category: Petroleum
NRL exports high speed diesel to Bangladesh
January 14, 2017 Saturday 10:33 AM By The Economic Times
Assam based Numaligarh Refinery Limited (NRL) has dispatched high speed diesel (HSD) to Bangladesh. A Railway rake containing 2281 metric tones (MT) of HSD was dispatched from NRL’s Marketing Terminal in Siliguri to Parbitipur Depot of Bangladesh Petroleum Corporation on Thursday. According to NRL, the consignment containing 42 wagons will travel over 516 kms (253 km in India and 263 km in Bangladesh) on the existing railway line via Rangapani, Singabad, Rohanpur to reach Parbatipur, Bangladesh. Earlier, NRL and Bangladesh Petroleum Corporation (BPC) have signed a Sale Purchase Agreement which includes joint initiative for construction of a 131 km long pipeline, with a capacity of 1 million Metric Ton per annum (MMTPA), from Siliguri to Parbatipur.  
Category: Petroleum
Govt may slash oil price in January: Muhith
December 28, 2016 Wednesday 8:23 PM By News Desk, energynewsbd.com
The government is likely to cut oil price further in January, 2017 to rationalize the petroleum products pricing in line with the international market value, Finance Minister AMA Muhith said. “We had hoped to bring it down in December, but it was not possible, so we hope to do so in January,” Muhith told journalists at the secretariat on Wednesday. "The rate of reduction (however) will not be much as the oil price in international market is fluctuating," he said. Asked about the delay, Muhith said: “The proposal has to be sent to the prime minister as it falls under her jurisdiction. We have not been able to send it yet.” Though the global price of oil has been falling for two years, the government had kept oil prices unchanged to compensate the Bangladesh Petroleum Corporation for its losses. On Apr 24 this year, the price of diesel and kerosene was reduced by about 4 per cent and the price of octane and petrol was brought down by approximately 10 per cent. A few days earlier the price of a litre of furnace oil was reduced from Tk 60 to Tk 42. “We have adjusted the prices slightly this calendar year and that is good enough,” said the finance minister. “We are not worried.” “The adjustment was based on the $80 crude oil price on the international market. Through prices fell to $40 at one point, they are rising once again. I believe they will end up around $60, so it is not too big.” Asked why a decision was taken to reduce the price, he explained:  “The purpose is to spread the savings and the benefits to all. As everyone is affected by the price of oil, we have decided to bring it down.”    
Category: Petroleum
BPC signs deal with China Petroleum for single point mooring
December 8, 2016 Thursday 11:19 PM By Staff Correspondent, energynewsbd.com
State-owned Bangladesh Petroleum Corporation (BPC) signed a deal with China Petroleum Pipeline Bureau (CPPB) to install single-point mooring (SPM) with double pipeline for the state-run Eastern Refinery Limited (ERL). SPM is an infrastructure, to be built in the Bay of Bengal, from where petroleum products will be carried through pipelines from mother vessels–to be moored from offshore to oil storage tanks onshore. CPPB will build the SPM as an engineering, procurement and construction (EPC) contractor. It will construct the SPM on Sonadia Island in deep sea. Sayed Mohammad Mozammel Haque, Director of BPC and Zhao Yujian, President of CPPB signed the agreement on behalf of their respective organisations at a Hotel in the city on Thursday. The deal was signed under the Speedy Supply of Power and Energy Act. Its main objective is to ensure un-loading of imported crude oil and finished products easily and at a low cost and short time. The estimated cost of the SPM project is Tk 5426.26 crore. The project is designed for ensuring un-loading of imported crude oil from deep sea in a more efficient and time-saving manner. According to deal, BPC will set up the SPM with the financial support of the Chinese EXIM Bank by July 2018. A total of 220 kilometre-long pipelines will be installed from the floating terminal (SPM) on the water of Bay of Bengal to ERL, a subsidiary of Bangladesh Petroleum Corporation, at Patenga in Chittagong. BPC imports crude and refined petroleum from different Middle-eastern and other countries using Chittagong port. Lighter vessels unload the oil at deep sea from mother vessels. Then the crude oil is carried on oil tankers to the ERL for distillation. With installation of the SPM, the BPC would be able to cut oil-unloading period to nine days from the existing 21 days from a 20-tonne lighter ship. It will also be able to save Tk 800 crore.  Speaking on the signing ceremony as the chief guest, State Minister for Power and Energy Nasrul Hamid, Energy and Mineral Resources Division said that the signing of this much awaited project has taken a long time. “The signing is finally done today and I hope the project will be completed soon on time,” he said. Energy and Mineral Resources Division Secretary Nazimuddin Chowdhury, BPC Chairman Md Mahmud Reza Khan were also present the signing ceremony.
Category: Petroleum
Oil price cut in the offing
December 3, 2016 Saturday 11:14 AM By Staff Correspondent, energynewsbd.com
The government is likely to reduce prices of octane, petrol, diesel and kerosene next week. An official of the Energy and Mineral Resources Division (EMRD) said on condition of anonymity that the prices may be reduced by Tk. 5 to Tk. 10 per litre. On March 31, the government slashed the price of furnace oil to Tk 42 from Tk 60 per litre with effect from April 1. On April 25, octane and petrol prices were cut by Tk 10 a litre and those of diesel and kerosene by Tk 3. Octane is currently selling for Tk. 89 per litre, petrol for Tk. 86, and kerosene and diesel for Tk. 65. The Prime Minister`s office (PMO) is recently said to have cleared a proposal recommending a cut in fuel prices. The proposal was sent to PMO by the EMRD. According to the proposal summary, octane and petrol prices will be cut by 10 per cent each. Prices of diesel and kerosene, which are more widely used by the public, are to be slashed by 5 per cent. Bangladesh is among a handful of countries that have kept domestic oil prices higher despite a drastic fall in international oil prices. The prices in Bangladesh are the highest among the South Asian countries. Before adjusting the oil prices in March 31 this year, Bangladesh Petroleum Corporation (BPC) had adjusted oil prices upwards in 2013 when the rate of the commodity per barrel rose to $122 in the international market. After that the state-owned enterprise had been maintaining the same prices for two years even though the oil price gradually dropped to less than $40 a barrel globally in last two years. Since July last year, crude oil prices plunged from over $110 a barrel to $28 a barrel in March this year on weak global demand. Prices are currently hovering at around $54 barrel.
Category: Petroleum
Govt to slash oil price: Muhith
November 17, 2016 Thursday 11:17 PM By BSS
The government is planning to cut oil price further to rationalize the value of the petroleum products in line with the falling prices in the international market, said Finance Minister AMA Muhith. "We have already reduced the oil price. We think, cutting further the oil price will be better for the country`s economy," he told journalists after emerging from a meeting with International Monetary Fund (IMF) team led by Mission Chief Brian Aitken at Finance Ministry on Thursday. IMF Senior Economist Jiri Jonas, Economist Jayendu De, Resident Representative Stella Kaendra, Security Advisor David Kehoe, Executive Director Subir Gokarn, among others, were present during the meeting. "We`ll make an announcement in this regard after holding a meeting with Prime Minister Sheikh Hasina soon," Muhith said. The government slashed the prices of different gasoline products by Taka 3-10 per litre on an average in April this year. The prices of octane and petrol were cut by Tk 10 per litre while diesel and kerosene by Tk 3 per litre. "We have taken this decision in a coordination meeting for reducing the oil price further. Now, we are preparing necessary papers in this regard," Muhith said. Referring to the discussion with the IMF team, the minister said the meeting was actually a courtesy call on and the team lauded the economic progress of the country. The team also focused on some challenges like export and investment growth to sustain the advancement of the country, he added.  
Category: Petroleum
23.9 lakh tonnes of petroleum to be imported under G-to-G arrangements
October 6, 2016 Thursday 2:54 PM By News Desk, energynewsbd.com
The government is going to import 23.9 lakh tonnes of petroleum products under government-to-government deals (G-to-G) from nine countries next fiscal year. The cabinet committee on economic affairs on Wednesday approved the proposal by Bangladesh Petroleum Corporation to import fuel, mostly diesel. Of the total amount, 12.3 lakh tonnes will come from Kuwait, 2.3 lakh tonnes from China, 2.7 lakh tonnes from Malaysia, 1.6 lakh tonnes from the UAE, 1.4 lakh tonnes from the Philippines, 1 lakh tonnes from Vietnam, 80,000 tonnes from Indonesia, 30,000 tonnes from Thailand and 50,000 tonnes from Oman. In 2015, the government decided that half of the petroleum products to be imported a year would be through g-to-g arrangements and the rest through open bidding. It is estimated that in 2017, the country`s demand for import of petroleum products a year will be 46.8 lakh tonnes. The price of fuel is determined by the international market rates. However, the premium cost, including shipping and other expenses, normally varies. Under a G-to-G arrangement, there is no scope for competitive pricing. The premium cost in open bidding, which began in the first half of the current fiscal year, is lower than that in g-to-g arrangements.
Category: Petroleum
Report on Bangladesh Petroleum Corporation Bill, 2016 placed
April 25, 2016 Monday 10:47 PM By BSS
Chairman of Parliamentary Standing Committee on Power, Energy and Mineral Resources Ministry M Tajul Islam on Monday placed the report on the "Bangladesh Petroleum Corporation Bill, 2016". The standing committee, in the report, recommended the House to pass the bill unanimously as determined by the committee. Earlier, State Minister for Power, Energy and Mineral Resources Nasrul Hamid introduced the bill seeking annulment of the Bangladesh Petroleum Corporation Ordinance, 1976 and reformulation of the same on November 10, 2015. The bill is aimed at giving legal coverage to the activities adopted under this ordinance and defending continuation of the actions taken so far. According to proposed law, the BPC, with an approved capital of Taka 5 crore under the Energy and Mineral Resources Ministry, would have a maximum nine-member board of directors. The bill said the BPC will be headquartered in Chittagong, but it could be shifted in the greater interest of the corporation.
Category: Petroleum
Govt finally cuts fuel oil prices
April 24, 2016 Sunday 7:20 PM By Staff Correspondent, energynewsbd.com
The government has reduced petrol-octane price by TK 10 per liter and diesel-kerosene by Tk 3 in the country. The Power, Energy and Mineral Resources Ministry has issued a gazette notification regarding the price cut on Sunday. The newly fixed price will be on effect from midnight on Sunday. The new price of petrol-octane price will be TK 86 and 89 and diesel and kerosene will be Tk 65 per liter respectively.
Category: Petroleum
Agreement to appoint consultant for ERL unit-2 signed
April 21, 2016 Thursday 11:04 PM By BSS
The state-run Eastern Refinery Limited (ERL) signed a deal with Indian firm Engineers India Limited (EIL) to appoint consultant for implementation of the second unit of ERL "We have planned a series of measures to augment energy production in the country through implementing the ERL unit-2 and setting up the LPG plant to gear up the energy supply," state minister for power and energy Nasrul Hamid said. Visiting Indian state minister for petroleum and natural gas Dharmendra Pradhan was also present at the signing ceremony. Mosleuddin, director operation and planning of ERL, and Upendra Moheshwari, director marketing of EIL, signed the agreement on behalf of their respective side on April 19, 2016. Nasrul Hamid said the government appointed the PMC (Project Management Consultant) for the second unit to be installed by 2018. The present government has undertaken the plan to set up the second unit of ERL to meet the growing demand of refined oil and ensure fuel and energy security in the country. He said ERL would be able to meet about 76 percent of the total demand of fuel in the country after completion of the project, adding, "Besides, it will increase fuel efficiency of the country to three million tonnes and save huge foreign currency." After the contract signing ceremony, State Minister for Petroleum and Natural Gas of India Dharmendra Pradhan told journalists that his country was grateful to Bangladesh for selecting an Indian consultancy firm for the praiseworthy project. "EIL is one of the most famous consultancy firms in the world. I hope they would sincerely extend their cooperation in implementing the project", he added. Abdul Latif, MP, Indian High Commissioner to Bangladesh Harsh Vardhan Shringla and high officials of ERL and EIL, among others, were present in the signing ceremony. According to the project, present Crude Oil processing capacity of ERL is 15 lakh tonnes per year. In contrast, current demand for Petroleum Product (POL) stands at nearly 64.00 lakh tonnes per year. In order to ensure energy security of the country, the government has accepted the construction of Unit-2 Project of ERL having 30.00 lakh tonnes of Crude Oil processing capacity. On implementation of the Unit-2, Crude Oil Processing capacity of ERL will increase to 45.00 lakh tonnes per year and it will bring in the much needed equilibrium between demand and supply of petroleum products in the country. It will also ensure production of eco-friendly Motor Gasoline and Diesel Oil and will ensure energy security of the country, it added. Earlier, the government floated a Request for Proposal for the PMC on July 30 last year and the TEC was asked to submit the report in 10 days. The second unit of the ERL is likely to be set up involving Taka 8,949 crore by 2018 with a capacity of refining around 3 million tonnes of crude oil annually. The ERL was set up at Patenga near the Chittagong Port in 1968.
Category: Petroleum
Indian firm to get unsolicited deal for ERL-2 consultancy
April 15, 2016 Friday 8:41 PM By Staff Correspondent, energynewsbd.com
The Indian firm Engineers India Limited (EIL) is going to be appointed as the consultant for the second unit of Eastern Refinery Limited (ERL), sources with the Bangladesh Petroleum Corporation (BPC) said. BPC will sign a contract with EIL on April 19.  EIL is expected to be rewarded the job at Tk 110.61 crore under the Speedy Supply of Power and Energy (Special Provision) (Amendment) act, 2015. Indian state minister for petroleum and natural gas Dharmendra Pradhan is expected to attend the signing ceremony, while state minister for power, energy and mineral resources Nasrul Hamid will attend the function. Meanwhile, the French firm Technip which had set up the fist unit of ERL has already expressed its interest to be the engineering, procurement and construction (EPC) contractor of the ERL-2 project. Sources with the Energy and Mineral Resources Division (EMRD) said that the negotiation with the Technip on being the EPC contractor is in final stage. The BPC in November, 2015 had already signed a Memorandum of Understanding (MoU) with Technip. We are now negotiating with the French firm about terms and conditions to implement the project, said an official with EMRD.   Sources with the Economic Relation Division (ERD) of Ministry of Finance told energynewsbd.com Wuhuan Engineering Co Ltd ofChina also had sent a letter to the ERD expressing its interest to get the EPC contract for the ERL. In a letter sent to the Senior Secretary of the ERD, Liu Jiamning, Vice Chief Economist of Wuhuan Engineering Co Ltd said that the Chinese government has given consent to give financial support for the ERL-2 on preferential buyers credit. ERD has forwarded the letter to EMRD and EMRD to BPC to evaluate Wuhuan’s proposal. When asked, officials with the BPC however did not comment on the Wuhuan’s proposal saying that the negotiation with Technip for EPC contract is in advanced stage and they are not thinking about any other option.   With the implementation of ERL-2, the country will be able to triple its capacity to refine 45 lakh tonnes of petroleum annually through implementing this Tk 15,300 crore project that will help save Tk 1,500 crore foreign currency from fuel imports per year. The BPC will import only 10 lakh tonnes of petroleum fuels after setting up the ERL unit-2, concerned official said. It spent Tk 26940.85 crore to import 53.93 lakh tonnes of refined and crude oil during last fiscal year, according to the state-run oil monopoly.
Category: Petroleum
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