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.