Eastern Refinery unit-2 tender by May, trial run in 2029: State minister
The government is moving ahead with plans to install a second unit at Eastern Refinery Limited to boost its capacity and strengthen the country’s energy security, with an international tender expected to be floated by May.
State Minister for Power, Energy and Mineral Resources Anindya Islam said the new unit is slated for trial operations in 2029, marking a significant step towards expanding domestic crude oil processing capacity.
For all latest news, follow The Daily Star's Google News channel. Speaking to reporters during a visit to the refinery this morning, the state minister said the government aims to bring the project to a visible stage of implementation within its current tenure.
Once operational, the new unit will significantly enhance the country’s ability to refine crude oil locally, facilitating diversification of fuel sources. It will allow Bangladesh to import crude from a wider range of countries instead of relying heavily on the Middle East, thereby reducing exposure to global market volatility and regional disruptions, he added.
The proposed second unit (ERL-2) is expected to have an annual refining capacity of around 3 million tonnes -- double the capacity of the existing facility.
The project was initially conceived over a decade ago and formally taken up by the then-government in the mid-2010s, but faced repeated delays due to financing and implementation complexities.
Established in 1968, Eastern Refinery has long been a cornerstone of the country’s fuel supply system, with an annual refining capacity of around 1.5 million tonnes. A large portion of crude oil is sourced from Saudi Arabia and the United Arab Emirates, keeping Bangladesh dependent on Middle Eastern supplies.
The state minister noted that instability in the Middle East since late February has affected oil shipments in March and April, although the situation is not unique to Bangladesh, as many countries reliant on the region face similar pressures.
He said the government has already initiated steps to secure fuel from alternative sources, adding that current refined fuel stocks remain at a comfortable level. In particular, jet fuel reserves are sufficient for nearly six weeks, and supplies are adequate to meet demand in April and May, with planning underway for June.
Meanwhile, ERL Managing Director Md Sharif Hasnat said production is currently running at a slower pace, with two units temporarily shut down. However, petrol and bitumen production continues.
A shipment carrying 100,000 tonnes of crude oil from Yanbu port in Saudi Arabia is expected to arrive later this month, he added.
Energy Secretary Md Saiful Islam and Joint Secretary Monir Hossain Chowdhury, among others, were present during the visit.
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