Dhaka: The Energy Division today stated that the operational capacity of Bangladesh's largest state-owned Eastern Refinery Limited (ERL) will have minimal impact on the national fuel supply. The facility contributes only one-fifth of the petroleum required for the country's supply system, while the remainder is imported in refined form.
According to Bangladesh Sangbad Sangstha, Energy Division Joint Secretary Monir Hossain Chowdhury addressed reporters, emphasizing that the government has secured the import of refined fuel despite the global challenges. He assured that there would be no adverse impact on the oil supply due to ERL's low feed operations.
During a press briefing at the ministry's conference room, Chowdhury highlighted ERL's significant role in maintaining an uninterrupted fuel supply, although it is not the primary source of petroleum for the country. Currently, the facility operates two out of its four units to refine oils with 'dead stocks' and plans to make the remaining units operational once crude petroleum imports resume.
Chowdhury noted that the government has ensured the import of refined fuel from alternative sources, alleviating concerns about the supply of petroleum products in the country. His comments came amidst public anxiety over the low performance of ERL.
Despite the production slowdowns at two ERL units due to crude oil shortages, Chowdhury reassured that the national fuel supply would remain stable, with over 255,000 metric tons of refined fuel currently in stock. He also mentioned ongoing efforts to diversify imports and increase cross-border pipeline supplies from India.
The Strait of Hormuz has been almost closed since February 28, obstructing the scheduled arrival of 200,000 metric tons of crude oil to Bangladesh. A ship named Nordics Pollux, carrying 100,000 tonnes of crude oil from Saudi Arabia, is currently stuck at Rastanura Port due to the situation.
Additionally, another ship from the United Arab Emirates was expected to arrive in March, but movement was restricted due to the war situation in the Persian Gulf. However, Chowdhury mentioned that a ship carrying 100,000 tonnes of Arabian Light Crude Oil is scheduled to depart from the UAE on April 20 and is expected to reach Chattogram via an alternative route by May 2-3.
The government has requested Saudi Arabia to supply an additional 100,000 tonnes of crude oil in May. A work order has also been issued, with cabinet approval, to import 100,000 tonnes of crude oil through direct purchase to address urgent needs.
Chowdhury noted that ERL processes about 1.5 million metric tons of crude oil annually, supplying roughly 20 percent of the nation's total fuel demand. Despite disruptions in the Strait of Hormuz affecting scheduled shipments from Saudi Arabia and the UAE, he remains hopeful that the next shipment will arrive by April 20.
A crude oil vessel has already departed from Yanbu port in Saudi Arabia and is expected to reach Bangladesh in late April or early May. Chowdhury reassured that even if ERL operations are temporarily disrupted, it will not significantly affect fuel supply, as sufficient refined fuel is already in stock.