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Petroleum
Unipec, Vitol poised to win tender to supply fuels to Bangladesh
Bangladesh Petroleum Corporation (BPC) has received offers from a mix of traders and state oil companies in its tender for over 1.4 million tonnes of oil products for the first half of 2019, with Unipec and Vitol giving the best quotations. “Unipec is supposed to win the tender for both gasoil and jet fuel as they came up with the lowest offers. And Vitol is likely to secure the tender for fuel oil and gasoline as their offers are (the) lowest,” said a senior official of BPC. The deals with Unipec and Vitol will be finalised within a short time after verifying all other details, the official said. China’s Unipec - trading arm of Chinese state major Sinopec - gave the lowest offer for gasoil and jet fuel at premiums to Middle East quotes of slightly below $2.90 and $3.70 a barrel respectively, according to the official. The Asian unit of trading house Vitol submitted gasoil and jet fuel offers that were slightly higher. Vitol Asia gave the lowest offers, however, at premiums to Middle East quotes for gasoline slightly under $4.25 a barrel and fuel oil at about $22.30 a tonne, the BPC official said. Other sellers who participated in BPC’s import tender include PetroChina, Sinochem, Emirates National Oil Company (ENOC), Trafigura, PTT and Gunvor. Bangladesh typically imports about 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 importers for those fuels in Asia.
Bangladesh tenders for 1.425m tonnes of oil products
October 17, 2018 Wednesday 12:16 PM By Reuters
Bangladesh Petroleum Corporation (BPC) issued an international tender on Tuesday to import up to 1.425 million tonnes of refined oil products in the first half of 2019, according to a tender document from the company. The state-owned company is seeking 1.06 million tonnes to 1.18 million tonnes of gasoil with a sulphur content of 500 parts per million, 80,000 to 120,000 tonnes of 180-centistoke high-sulphur fuel oil, 110,000 tonnes of jet fuel and 15,000 tonnes of 95-octane gasoline. The tender closes on October 25 and is valid up to February 25, 2019. Delivery will be carried out in phases over the first half of 2019, a senior BPC official said. Some volumes will also be imported through separate term deals, he told Reuters, without giving details. BPC resumed issuing tenders for long-term contracts in February 2016 after a 15-year hiatus, during which it negotiated directly with suppliers of fuel products. The company wants to move away from direct deals and instead buy at cheaper rates through international tenders. A shortfall in supplies of natural gas has forced the South Asian country to burn oil, a costlier option, to generate electricity. Bangladesh typically imports about 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 such importers in the region. Currently, BPC has term contracts with eight companies for refined oil product imports. Suppliers for Bangladesh’s middle distillates contracts include Kuwait Petroleum Corp, Malaysia’s Petroliam Nasional Bhd, Emirates National Oil Co, Philippines National Oil Co, Indonesia’s Bumi Siak Pusako and PetroChina. Bangladesh has also signed a 15-year deal with India’s Numaligarh refinery to supply diesel, its first long-term contract with any Indian supplier. BPC also buys 700,000 tonnes of Murban crude from Abu Dhabi National Oil Co annually and another 700,000 tonnes of Arab Light from Saudi Aramco for its only refinery. Bangladesh started operations at the country’s first liquefied natural gas (LNG) terminal in August, to offset falling domestic gas production.
Category: Petroleum
Hasina, Modi inaugurate construction of 130km cross-border oil pipeline
September 18, 2018 Tuesday 10:56 PM By News Desk, energynewsbd.com
Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi were jointly inaugurating the construction of 130-km Bangladesh-India Friendship Pipeline between Siliguri in West Bengal and Parbatipur in Dinajpur on Tuesday. They opened the work on the oil pipeline through videoconferencing. Sheikh Hasina attended the videoconference from her official residence Ganobhaban while Narendra Modi from his office in New Delhi, according to a report of UNB. About the pipeline, the Prime Minister said the 130-km India-Bangladesh Friendship Pipeline from Shiliguri to Parbatipur in Bangladesh is a new milestone in the history of cooperation between the two countries. “This will be the first such pipeline through which refined diesel will be supplied to Parbatipur depot from Numaligarh of Assam in India,” she said. The Prime Minister mentioned that Bangladesh will initially receive 2.5 lakh tonnes of diesel per annum and it will gradually be increased to 4 lakh tonnes. She also said the first consignment of diesel from India reached Bangladesh in March 2016 through rail wagons. Hasina expressed her gratitude to her Indian counterpart for his active role in implementing these projects. Referring to her inauguration together with Modi of the supply of 500MW electricity and two railway projects on September 10 and today’s joint projects, the Prime Minister said, “This intermittent contact between us, I believe, will further cement the ties of cooperation between Bangladesh and India.” Indian Prime Minister Narendra Modi said the two countries implemented a number of projects within a short time which are the symbols of good relations between the two countries. Modi said these projects have initiated a new chapter in the bilateral relations between Bangladesh and India. “It’ll play a significant role in Bangladesh`s development as fuel oil could be supplied to the northern region at a low cost,” he said. Currently, imported oil is stored in Chattogram depot after unloading it from the ship at Chattogram Port. Later, the oil is brought to Khulna Doulatpur depot through coastal tanks and carried to Parbatipur again through rail wagons. This requires additional time and money as well as transport. The pipeline will solve these problems. Through the cross-border pipeline, India will supply fuel oil from its Numaligarh Refinery Ltd (NRL), located at Golaghat in the northeastern state of Assam, while Bangladesh will receive the oil at Parbatipur depot of Bangladesh Petroleum Corporation (BPC) in Dinajpur. India will supply 2.5 lakh tonnes of diesel in the first three years. The import of fuel through the pipeline will be raised further as per the requirements of Bangladesh. The NRL will distribute diesel for 15 years through the pipeline and the time could be expanded following the consent of both sides. Bangladesh’s Foreign Minister AH Mahmood Ali, Indian External Affairs Minister Sushama Swaraj and Indian Petroleum and Natural Gas Minister Dharmendra Prodhan also spoke on the occasion.  
Category: Petroleum
Sheikh Hasina, Modi to open Bangladesh-India oil pipeline Tuesday
September 17, 2018 Monday 11:13 PM By News Desk, energynewsbd.com
Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi will jointly inaugurate construction work of Bangladesh-India Friendship Pipeline between Shiliguri in West Bengal of India and Parbatipur in Dinajpur of Bangladesh on Tuesday. The two premiers will open the construction work of the oil pipeline through a videoconference from their respective capitals at 5 pm on Tuesday, Bangladesh Petroleum Corporation (BPC) Chairman Md Akram-Al-Hossain said. He also said this pipeline will play an effective role in strengthening further the energy security of Bangladesh. The officials said currently imported oil is stored in Chattogram depot after unloading it from the ship of at Chattogram Port. Later the oil is brought to Khulna Doulatpur Depot through coastal tanks and it was carried to Parbatipur again through rail wagons. In this process, additional time and money is required alongside creation of transport-related problems. But with the launching of the pipeline, these problems will be solved. Bangladesh and India signed an MoU here on April 9 last to set up the 130-km oil pipeline aimed at pumping Indian oil to Bangladesh with a capacity of 1 million tonnes per annum. Earlier, Bangladesh inked a sale and purchase agreement with India on importing diesel through the pipeline on Oct 22 in 2017. Through the cross-border pipeline, India will supply fuel oil from its Numaligarh Refinery Ltd (NRL), located at Golaghat in the north-eastern state of Assam, while Bangladesh will receive the oil at Parbatipur Depot of Bangladesh Petroleum Corporation (BPC) in north-western district of Dinajpur, the BPC sources said. India will supply 2.5 lakh metric tons of diesel for the first three years and the amount will be increased to 4 lakh MY in the last five years. The import of fuel will be further raised in future through the pipeline as per the requirements of Bangladesh. The NRL will distribute diesel for 15 years through the pipeline and the time could be expanded following the consent of both sides, the BPC sources said. With the completion of construction work of the pipeline, they said, the deal on sale and purchase will be made effective. The Parbatipur Depot formally received the first consignment of 2,268 MT diesel from the NRL through rail wagons on March 19, 2016. Through the rail wagons, Bangladesh has imported 57,000 MT diesel from India till July 2018 and it is expected that 50,000 MT more will be brought from India in August-December 2018 through the same way.  
Category: Petroleum
BPC makes Tk26cr profit in 4 years
July 2, 2018 Monday 6:15 PM By Staff Correspondent, energynewsbd.com
State-owned Bangladesh Petroleum Corporation (BPC) made profit of around Tk26,000 crore by selling fuel oil at home, at a higher price than that of the international market in the last four fiscal years. Analysing the 2018-19 fiscal year budget summary of state-owned institution and Bangladesh Economic Review 2018, it is known that BPC has earned Tk25,816 crore from 2014-15 FY to April of 2017-18 FY. BPC has started to earn profit when international market price of petroleum oil started to be downward in 2015, which lasted for two years. BPC has made successive profit without lowering price down in that time. Last year, international market price soared up exceeding domestic market price in the mid November-December. Now, BPC costs loss in selling of diesel, kerosene, furnace oil, resulting of a possible proposal to the Energy and Mineral Resources Division to hike the fuel price. But they are making profit selling octane, petrol, and jet fuel, said a BPC official. Meanwhile, BPC has deposited only Tk2,950 crore to the government exchequer even though they have made about Tk26,000 crore profit. In the first year, they did not provide any share of dividend to the government exchequer. However, they deposited Tk1,000 crore in the 2015-16 fiscal year after exchanging letters between BPC and the Ministry of Finance, though Tk5,000 crore were demanded from BPC.  Citing reasons of reduction of the profit earning, BPC provided only Tk750 crore dividend although it was ordered to deposit Tk2,500 crore in the FY 2017-18. However, BPC did not repay their loans to the government.
Category: Petroleum
Bangladesh urges French help for energy sector
April 10, 2018 Tuesday 10:24 AM By News Desk, energynewsbd.com
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has sought French cooperation in enhancing the capacity of the energy sector officials, especially in the operation of state-owned refinery being set up in Chattogram. He made the call when French Ambassador in Bangladesh Marie Annick Bourdin met him at his Energy Ministry office on April 8, said a press release. Currently, Techinp, a French company, remained engaged in setting up the second unit of state-owned Eastern Refinery in Chattogram. Besides, French firm Lafarge and other companies have investment in different sectors, including cement and clean energy. Welcoming the French ambassador, Nasrul Hamid said France has been one of the leading development partners of Bangladesh. He said both the nations will be benefited if they work together for different development projects. Both the state minister and the ambassador discussed various issues, including progress on different other projects involving bilateral interests of the two countries. The state minister said both Bangladesh and France have to continue efforts to further strengthen cooperation between the two countries.
Category: Petroleum
China to give $554m for Single Point Mooring project
October 30, 2017 Monday 1:30 PM By News Desk, energynewsbd.com
State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Sunday said coordinated initiatives would ensure energy security in the country. "We have given emphasis on easy availability of crude oil by using multi- lingual LNG, LPG or coal," he said while speaking as the chief guest at the Framework Agreement ceremony at NEC-2 conference room at Sher-E-Banglanagar in Dhaka. Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and Chinese Ambassador to Bangladesh Ma Mingqiang signed the deal for financing the "Installation of Single Point Mooring (SPM) with Double Pipeline." The state minister said it is necessary to adopt infrastructural master plan or economic development master plan for the country. Seeking more Chinese assistance for implementation of various projects undertaken by the DPDC or PGCB, Nasrul said the Dhaka city would be brought under uninterrupted power supply by implementing the DPDC`s projects. He said the opportunity has been created for investment of $ 25 billion in electricity and energy sector in Bangladesh. The state minister also sought Chinese support for developing a disaster infrastructure rescue team, adding, "The amount of foreign aid in the SPM project is $ 554.40 million, out of which the flexible loan amount is US $ 82.56 million and the amount of Preferential Buyer`s Credit (PBC) is $ 467.84 million." Among others, BPC chairman Abu Hena Mohammad Rahmatul Munim was also present.
Category: Petroleum
15-yr deal likely with India to import diesel thru’ pipeline
September 13, 2017 Wednesday 1:59 PM By UNB
A move is underway to sign a 15-year deal with India to annually import 250,000 tonnes to 400,000 tonnes of diesel from the neighbouring country through a cross-border pipeline. After a long discussion between Dhaka and New Delhi, the Bangladesh government has finally decided to sign the contract with India to import petroleum, according to official sources. They said the Cabinet Economic Affairs Committee approved a proposal in principle in this regard on August 23. The whole consignment of petroleum will come through a cross-border pipeline from India`s Numaligarh refinery, located in Gloaghat in north-eastern Indian state of Assam, while Bangladesh will receive it at Parbatipur petroleum fuel depot in north-western district of Dinajpur. To facilitate the import, both the neighbours have to build a 130-km cross-border pipeline, named as `Indo-Bangla Friendship Pipeline`, of which a 125-km one is to be laid in Bangladesh while only 5-km in India. Official sources said though most part of the proposed pipeline is to be laid in Bangladesh part, Indian government will provide about Rs 303 crore as a grant to build the pipeline project in Bangladesh portion. However, Bangladesh will build and operate the pipeline in its part while India will build and operate the pipeline in its portion. While promising the grant for the pipeline, the officials said New Delhi tagged a pre-condition that Dhaka has to first sign a `Sales & Purchase Agreement (SPA) to receive the grant. In compliance with the New Delhi`s condition, the Cabinet Economic Affairs Committee, the highest policymaking body in making economic decision, especially any big purchase without tender, approved a proposal of the Energy Division to sign the SPA. Bangladesh Petroleum Corporation (BPC) officials said once they received the copy of the cabinet body`s approval, they will move to sign the SPA. "We hope, the SPA will be signed within a month or two and then the initiative for the construction of pipeline will be taken. It`ll take at least two years to complete the construction," a top official of the BPC told UNB requesting anonymity as he is not authorised to speak on the issue. An official document obtained by UNB revealed that in the SPA, the `premium` or transportation cost of the petroleum was fixed at $5.5 per barrel of diesel and the price of petroleum will be fixed on the basis of price on the international oil market. Bangladesh now imports diesel with a premium of $4.4 per barrel. The documents also reveal that Bangladesh will annually import 250,000 metric tonnes in the first three years, 300,000 mt annually in the 4th to 6th years, 350,000 mt annually in the 7th to 10th years and 400,000 mt annually from the 11th to 15th years.
Category: Petroleum
No fuel price cut for now
May 8, 2017 Monday 2:45 PM By News Desk, energynewsbd.com
State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Sunday said the government has no plan to reduce oil prices for now as Bangladesh Petroleum Corporation (BPC) may face a loss in the next fiscal year if international market prices continued to rise. Reading out scripted answers following lawmakers` queries in parliament, he said the taka to dollar exchange rate was also increasing regularly. Global market prices have been rising for the last one year, he said, adding that the lowest price was seen in January 2016 when the average cost per barrel was US$ 33.85, rising to US$ 66.03 in April 2017. He said BPC still owed the government Tk 27,419.81 crore in loans as it incurred losses earlier selling fuel at subsidised rates. The government slashed prices twice, on April 1 and 25, last year following a slump in the international market, he noted.
Category: Petroleum
Deal signed for setting up of a 3,000 barrel per day capacity Catalytic Reforming Unit
February 15, 2017 Wednesday 3:49 PM By News Desk, energynewsbd.com
State-owned Sylhet Gas Field Limited (SGFL) and a consortium of Indonesia-based PT ISTANA KARANG LAUT and local company Energypac Power Generation Limited have recently signed an agreement for setting up of a 3,000 barrel per day capacity Catalytic Reforming Unit (CRU) at Rashidpur in the district of Habiganj. Operations Director of PT ISTANA KARANG LAUT Phillippe Supper and Company Secretary of SGFL Md Showkat Alam Quadri signed the deal on behalf of the respective parties at a program in Dhaka, said a press release. The plant facilities schedule for completion in two years’ time would convert petrol into octane. The country will attain self-sufficient in the fulfillment of octane demand on completion of the project. The total project cost is about Tk 500 crore and being financed by SGFL’s own source. Another 4,000 barrel/day capacity condensate fractionation plant is being built in Rashidpur, which will be fed by the Chevron-run Bibiyana gas field. Petrol to be produced by the existing 3750 barrel/day and later on 4,000 barrel/day condensate fractionation plant will be fed to the catalytic reforming unit for converting the petrol into octane. Once completed, it will produce about 2,710 barrel of octane (octane no 95+) and 25 tonne of liquefied petroleum gas (LPG) daily from condensate.
Category: Petroleum
Govt going to reduce fuel price again
February 5, 2017 Sunday 12:20 PM By Staff Correspondent, energynewsbd.com
The government is going to adjust the prices of four different petroleum fuels to reflect the downscaling in global oil price. The price of petrol and octane will be reduced by 5 per cent and 8 per cent for kerosene and diesel per litre. A proposal will be send to Ministry of Power, Energy and Mineral Resources from the Ministry of Finance within this week. After reviewing, the proposal will send for the nod of Prime Minister, said an official of Ministry of Finance. The new prices of petrol will be Tk 81.70, octane Tk 84.55, kerosene and diesel Tk 60. Jet fuel and furnace oil price will be out of this reduction. If the proposal of Ministry of Finance got final approval especially if the price of diesel and kerosene reduced then the poor, middle class and villagers will be more benefited. The subsidiary in electricity production will be reduced if diesel price reduced. Farmers and electric pump users will be specially benefited.  Ministry of Finance already made a synopsis about the fuel price reduction where the new proposed petrol price will be Tk 81.70 instead of present selling price Tk 86.00 reducing by Tk 4.30. Octane will be Tk 84.55 instead of present price Tk 89.00 reducing by Tk 4.45. The present price of both kerosene and diesel is Tk 65.00 and new prices will be Tk 60 reducing by Tk 5.00. Despite the proposed reduction of four different petroleum fuel prices, Bangladesh Petroleum Corporation (BPC) will be profit trend. BPC will earn Tk 116 crore, Tk 125 crore, Tk 335 crore and Tk 1,279.34 crore yearly from selling petrol, octane, kerosene and diesel respectively total amounting 1,854.72 crore from the above four petroleum fuels. The synopsis was made after analyzing the International oil market trend. According to recent report of Bloomberg, the oil price will be stable in 2017despite the downscaling in global oil price in last 3 years. Fuel price specially Brent Crude Oil will be $ 58 per barrel. Gulf Research Center assumes the price will be around $ 60 per barrel through the current year. According to The World Bank oil price will be $ 55.2 per barrel. Assuming the price at $ 60 per barrel, BPC will make Tk 3.22 profit from the sale of per litre diesel after reducing present price by 8 per cent and Tk 10.56 from kerosene.    
Category: Petroleum
BPC signs deal with Technip for ERL unit-2
January 18, 2017 Wednesday 10:25 PM By Staff Correspondent, energynewsbd.com
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.
Category: Petroleum
Oil price will be not be reduced: Nasrul
January 18, 2017 Wednesday 10:10 PM By Staff Correspondent, energynewsbd.com
The government will not reduce the prices of fuel oil in local market, the state minister for power, energy and mineral resources Nasrul Hamid has said. Talking with the journalists at the sideline of a contract signing ceremony at the secretariat on Wednesday, Nasrul said that the price of fuel oil in the international market is on the rise and the World Bank has forecasted the trend will continue in next one year. In October, last year, the World Bank raised its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to limit production after a long period of unrestrained output. Oil prices have increased in recent weeks. Brent crude futures, the international benchmark for oil prices, were up 17 cents $55.64 a barrel today, according to Reuters. Meanwhile, talking with the journalist at the secretariat, Finance Minister Abul Maal Abdul Muhit said, he is not sure about whether the government has taken the decision to reduce the price of oil or not. Tofael Ahmed, the Commerce Minister who was also beside him at that time said that to his knowledge, the government is yet to make any decision about oil price reduction. “As far as I know, there has been no decision taken in this regard and there has been no discussion about this in the last cabinet meeting with the Prime Minister.” Earlier on November 20, last year, Finance Minister Muhith said the government decision to reduce again the prices of petroleum oils would be taken in mid-December. In December, Finance Minister Muhith announced that the government may lower the prices of fuel oil by a “small margin” in January. He however said that time since price of fuel oil increased in the international market in December, the rate of reduction will not be much.” In April, Bangladesh cut the prices of octane and petrol by Tk 10 per litre and diesel and kerosene by Tk 3, with the intention of passing on the benefits of low prices on the international market to consumers in the country. At that time, the government said the cut was part of a government plan to reduce the fuel prices in phases.
Category: Petroleum
NRL exports high speed diesel to Bangladesh
January 14, 2017 Saturday 10:33 AM By The Economic Times
Assam based Numaligarh Refinery Limited (NRL) has dispatched high speed diesel (HSD) to Bangladesh. A Railway rake containing 2281 metric tones (MT) of HSD was dispatched from NRL’s Marketing Terminal in Siliguri to Parbitipur Depot of Bangladesh Petroleum Corporation on Thursday. According to NRL, the consignment containing 42 wagons will travel over 516 kms (253 km in India and 263 km in Bangladesh) on the existing railway line via Rangapani, Singabad, Rohanpur to reach Parbatipur, Bangladesh. Earlier, NRL and Bangladesh Petroleum Corporation (BPC) have signed a Sale Purchase Agreement which includes joint initiative for construction of a 131 km long pipeline, with a capacity of 1 million Metric Ton per annum (MMTPA), from Siliguri to Parbatipur.  
Category: Petroleum
Govt may slash oil price in January: Muhith
December 28, 2016 Wednesday 8:23 PM By News Desk, energynewsbd.com
The government is likely to cut oil price further in January, 2017 to rationalize the petroleum products pricing in line with the international market value, Finance Minister AMA Muhith said. “We had hoped to bring it down in December, but it was not possible, so we hope to do so in January,” Muhith told journalists at the secretariat on Wednesday. "The rate of reduction (however) will not be much as the oil price in international market is fluctuating," he said. Asked about the delay, Muhith said: “The proposal has to be sent to the prime minister as it falls under her jurisdiction. We have not been able to send it yet.” Though the global price of oil has been falling for two years, the government had kept oil prices unchanged to compensate the Bangladesh Petroleum Corporation for its losses. On Apr 24 this year, the price of diesel and kerosene was reduced by about 4 per cent and the price of octane and petrol was brought down by approximately 10 per cent. A few days earlier the price of a litre of furnace oil was reduced from Tk 60 to Tk 42. “We have adjusted the prices slightly this calendar year and that is good enough,” said the finance minister. “We are not worried.” “The adjustment was based on the $80 crude oil price on the international market. Through prices fell to $40 at one point, they are rising once again. I believe they will end up around $60, so it is not too big.” Asked why a decision was taken to reduce the price, he explained:  “The purpose is to spread the savings and the benefits to all. As everyone is affected by the price of oil, we have decided to bring it down.”    
Category: Petroleum
BPC signs deal with China Petroleum for single point mooring
December 8, 2016 Thursday 11:19 PM By Staff Correspondent, energynewsbd.com
State-owned Bangladesh Petroleum Corporation (BPC) signed a deal with China Petroleum Pipeline Bureau (CPPB) to install single-point mooring (SPM) with double pipeline for the state-run Eastern Refinery Limited (ERL). 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. 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 organisations at a Hotel in the city on Thursday. The deal was signed under the Speedy Supply of Power and Energy Act. Its main objective is to ensure un-loading of imported crude oil and finished products easily and at a low cost and short time. The estimated cost of the SPM project is Tk 5426.26 crore. The project is designed for ensuring un-loading of imported crude oil from deep sea in a more efficient and time-saving manner. According to deal, BPC will set up the SPM with the financial support of the Chinese EXIM Bank by July 2018. A total of 220 kilometre-long pipelines will be installed from the floating terminal (SPM) on the water of Bay of Bengal to ERL, a subsidiary of Bangladesh Petroleum Corporation, at Patenga in Chittagong. BPC imports crude and refined petroleum from different Middle-eastern and other countries using Chittagong port. Lighter vessels unload the oil at deep sea from mother vessels. Then the crude oil is carried on oil tankers to the ERL for distillation. With installation of the SPM, the BPC would be able to cut oil-unloading period to nine days from the existing 21 days from a 20-tonne lighter ship. It will also be able to save Tk 800 crore.  Speaking on the signing ceremony as the chief guest, State Minister for Power and Energy Nasrul Hamid, Energy and Mineral Resources Division said that the signing of this much awaited project has taken a long time. “The signing is finally done today and I hope the project will be completed soon on time,” he said. Energy and Mineral Resources Division Secretary Nazimuddin Chowdhury, BPC Chairman Md Mahmud Reza Khan were also present the signing ceremony.
Category: Petroleum
Oil price cut in the offing
December 3, 2016 Saturday 11:14 AM By Staff Correspondent, energynewsbd.com
The government is likely to reduce prices of octane, petrol, diesel and kerosene next week. An official of the Energy and Mineral Resources Division (EMRD) said on condition of anonymity that the prices may be reduced by Tk. 5 to Tk. 10 per litre. On March 31, the government slashed the price of furnace oil to Tk 42 from Tk 60 per litre with effect from April 1. On April 25, octane and petrol prices were cut by Tk 10 a litre and those of diesel and kerosene by Tk 3. Octane is currently selling for Tk. 89 per litre, petrol for Tk. 86, and kerosene and diesel for Tk. 65. The Prime Minister`s office (PMO) is recently said to have cleared a proposal recommending a cut in fuel prices. The proposal was sent to PMO by the EMRD. According to the proposal summary, octane and petrol prices will be cut by 10 per cent each. Prices of diesel and kerosene, which are more widely used by the public, are to be slashed by 5 per cent. Bangladesh is among a handful of countries that have kept domestic oil prices higher despite a drastic fall in international oil prices. The prices in Bangladesh are the highest among the South Asian countries. Before adjusting the oil prices in March 31 this year, Bangladesh Petroleum Corporation (BPC) had adjusted oil prices upwards in 2013 when the rate of the commodity per barrel rose to $122 in the international market. After that the state-owned enterprise had been maintaining the same prices for two years even though the oil price gradually dropped to less than $40 a barrel globally in last two years. Since July last year, crude oil prices plunged from over $110 a barrel to $28 a barrel in March this year on weak global demand. Prices are currently hovering at around $54 barrel.
Category: Petroleum
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