State-owned Bangladesh Petroleum Corporation (BPC) has finalised long-term contracts with 13 companies, including Malaysia's Petronas, to import refined oil products which will start from the second half of this year, reports BSS.
The premium for 180-centistoke (cst) quality fuel oil for the second half of the current year will be $ 24 a tonne compared to Singapore spot quotes which is $ 29.95 per tonne.
"The lower premiums are in line with a weaker market in Asia seen in the first half of this year," a competent source said.
BPC finalised its gasoil with 2,500 parts-per-million (ppm) sulphur contract for the July-December period at a premium of $4.49 per barrel over Middle East quotes, down from $4.50 per barrel for the second half of 2014.
However, premiums for gasoil with 500 ppm was fixed at $ 4.50 a barrel over Middle East quotes as the country aims to lower the sulphur content of its gasoil
imports in line with a global move towards cleaner fuel.
China Zhenhua Oil Company and Oman Trading teamed up with the suppliers for the first time.
Other suppliers for Bangladesh's middle distillates contracts are Kuwait Petroleum Corporation (KPC), Malaysia's Petronas, Emirates National Oil Company (ENOC), Philippines National Oil Company, Vietnam's Petrolimex, Indonesia's Bumi Siak Pusako, Petro China, Maldives National Oil Company and Unipec.
Turkish Petroleum and Brunei Petroleum joined the growing list of oil product suppliers to Bangladesh during the first half.
Bangladesh is also in talks to import gasoil from India's Numaligarh Refinery Ltd, energy ministry officials said.
Bangladesh imports 3.0-3.3 million tonnes of gasoil a year and around 800,000 tonnes of fuel oil to meet its demand while the country's lone Eastern Refinery produces some 350,000 tonnes of gasoil.
