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.