BPC extends bid deadline for study on crude oil refinery

Dhaka,  Fri,  22 September 2017
Published : 13 Apr 2017, 00:40:42

BPC extends bid deadline for study on crude oil refinery

FE Report

State-run Bangladesh Petroleum Corporation (BPC) has extended the bid submission deadline by 15 days for interested firms to carry out a feasibility study on setting up a new crude oil refinery near Payra seaport in southern Bangladesh.

The new bid submission deadline is April 25 instead of previous April 10, said a senior BPC official.

The government has moved to build the refinery, having a capacity of 7.50 million tonnes per year, along with a single point mooring (SPM) system, jetty and storage facility at the petroleum refining complex.

A senior official of Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR) said that China has expressed the interest to set up the refinery.

China Huanqiu Contracting and Engineering Corporation sent a proposal to BPC, said the official, preferring anonymity.

The Chinese firm also agreed to finance the project and proposed for installation of a strategic oil reservoir with a capacity of 500,000 tonnes.

Bangladesh's currently operational crude oil refinery, Eastern Refinery Limited (ERL) having a de-rated capacity to refine around 1.4 million tonnes of crude oil annually, went into commercial operation in 1968 with 30 years of economic life.

Separately, BPC was working to build a 3.0 million tonnes per year capacity crude oil refinery near the existing ERL unit in Chittagong.

BPC has already inked a deal with French Technip to prepare the Front End Engineering Design, or FEED, of the refinery in January.

BPC would pay Tk 2.57 billion (US$ 32.10 million) to Technip for the task and Technip would prepare the design and relevant documents within eight months by September this year. Indian firm Engineers India Limited (EIL) has been acting as the project management consultant (PMC) to implement the second unit of ERL's wholly-owned subsidiary, said the official.

Bangladesh would be implementing it under Speedy Supply of Power and Energy (Special Provision) Act, 2010 bypassing tender procedure, a BPC official said.

Currently, Bangladesh annually imports around 5.50 million tonnes of crude and refined petroleum products combined to meet the local demand.

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