Crude oil to be refined in country: Nasrul

DHAKA, Jan 18, 2017 (BSS) - State Minister for Power, Energy and

Mineral Resources Nasrul Hamid today said crude oil would be refined in the country as Bangladesh is now self-reliant in petrol production.

The state-run Eastern Refinery Limited (ERL) would refine 4.5 million tonnes of crude oil per annum, he said this during a contract signing ceremony at his ministry in the city.

The state minister said Bangladesh requires a total of 5.50 million tonnes of fuel annually, of which 1.50 million tonnes of refined oil comes from the ERL, adding, The proposed ERL unit-2 would add 3.0 tonnes of refined oil after completion.

The government would ensure energy security further in the country through implementation of the second unit of ERL and it will increase fuel efficiency of the country to three million tonnes and save huge foreign currency, Nasrul stated.

Bangladesh Petroleum Corporation (BPC) signed a contract with France based company Technip for preparing an engineering design to construct a refinery unit with a capacity of processing three million tonnes of crude oil every year.

Director (Operation) of Bangladesh Petroleum Corporation (BPC) Syed M Mozammel Hoque, Director of Technip, Malaysia Amran Bin Ahmad and Sales Manager of Technip France Didier Lequex signed the contract for FEED Services for the Installation of ERL Uni-2 on behalf of their respective sides. The estimated cost for the contract is Taka 371.81 crore.

Earlier, the BPC signed a Memorandum of Understanding (MoU) with

Technip, France on November 11, 2015 and fixed the cost to construct the Front End Engineering Design (FEED) for the plant of ERLUnit-2.

Replying to a query, the state minister said the government would not reduce the prices of fuel oil in local market.

The prices of fuel oil in the international market started increasing, and the World Bank forecast the trend would continue in next one year, he added.

The second unit of the ERL is likely to be set up involving Taka

16,739.09 crore by 2018. The ERL was set up at Patenga near the

Chittagong Port in 1968.

Source: Bangladesh Sangbad Sangstha (BSS)