A memorandum of understanding (MoU) was signed between Bangladesh Petroleum Corporation (BPC) and French firm Technip to set up a new Tk89.49 billion second unit at the Eastern Refinery Limited (ERL).
The MoU was inked at Pan Pacific Sonargaon hotel in the capital on Wednesday.
The new unit will refine 3.0 million tonnes of crude annually. ERL now refines 1.5 million tonnes of crude a year.
On completion of the second unit, the total refining capacity of the ERL will reach 4.5 million tonnes a year.
“The French company Technip was given the task to establish the second unit as it set up the first unit of the ERL,” said Abul Kalam Azad, Principal Secretary to the Prime Minister’s Office (PMO) and also Chairman of the Board of the ERL.
Technip South Asian representative said they have much efficiency in installing refinery plants across the globe. So, they would be able to establish the plant in time.
With the establishment of the plant, the country will be able to triple its capacity to refine 4.5 million tonnes of petroleum annually.
After implementing the project, it will help save Tk 1,500 crore foreign currency from fuel imports per year.
BPC Chairman AM Badruddoza told energynewsbd.com: “The BPC has capacity to refine 1.5 million tonnes of petroleum fuels at the ERL unit-1 which will rise to 4.5 million tonnes after the installation of the second one.”
He added that the BPC would import only 1 million tonnes of petroleum fuels after setting up the ERL unit-2.
With the support of IDB, IMF and local resources, the government now imports petroleum in large quantities.