Fun & Games

SPM, ERL unit-2 save Tk 3,400 cr annually

DHAKA-Installations of Single Point Mooring (SPM) and Eastern Refinery Limited unit-2 (ERL unit-2) are expected to save Taka 3,400 crore per annum and ensure energy security further in the country through implementation of these two projects.

"The government has already signed separate deals with two foreign firms for completing these two projects within the scheduled time," State Minister for Power, Energy and Mineral Resources Nasrul Hamid told BSS here today.

He said the Single Point Mooring would save Taka 1,000 crore and the

Eastern Refinery Limited Unit-2 would save Taka 2,400 crore annually by ensure energy security in the country after implementation.

According to the SMP project details, the state-owned Bangladesh Petroleum Corporation (BPC) signed a deal with China Petroleum Pipeline Bureau (CPPB) to install single-point mooring (SPM) with double pipeline under Government to Government (G to G) arrangement by the Chinese Exim Bank's finance by 2018.

SPM is an infrastructure, to be built in the Bay of Bengal, from where petroleum products will be carried through pipelines from mother vessels to be moored from offshore to oil storage tanks onshore, Nasrul Hamid said.

He said the CPPB will build the SPM as an engineering, procurement and construction (EPC) contractor. It will construct the SPM on Sonadia Island in deep sea.

Sayed Mohammad Mozammel Haque, Director of BPC and Zhao Yujian, President of CPPB signed the agreement on behalf of their respective organizations in the city on December 8, 2016.

The estimated cost of the SPM project is Taka 5,426.26 crore, which would be set up by BPC with Chinese EXIM Bank fund by July 2018. A total of 220 kilometre-long pipeline will be installed from the floating terminal-SPM to ERL at Patenga in Chittagong.

According to the ERL project, Bangladesh Petroleum Corporation (BPC) on January 18, 2017 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 also 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 project namely FEED services for the installation of ERL unit-2 at a cost of Taka 371.81 crore. As per deal, BPC would pay Taka 257 crore for the task. The France based Technip will prepare the design and relevant documents within eight months.

Presently, ERL refines 1.3 million tonnes of crude oil annually though its capacity of 1.5 million tonnes. The BPC annually imports nearly 5 million tonnes of crude and refined oil at an average cost of Taka 50,000 crore.

The state minister, however, said that the second unit of ERL will increase fuel efficiency of the country to three million tonnes and save huge foreign currency, adding, "I hope the project will be completed on time."

Source: Bangladesh Sangbad Sangstha (BSS)