Govt moves to expand ERL capacity

FE REPORT | Published: May 12, 2026 23:55:55

The government has launched a major initiative to expand Bangladesh's fuel- refining capacity through a large-scale modernisation project at Eastern Refinery Limited (ERL), aiming to strengthen energy security and reduce dependence on imported refined petroleum products.
The project will add a new refining unit capable of processing 3.0 million metric tonnes of crude oil annually, significantly boosting the country's refining capacity while supporting the production of cleaner and more environment-friendly fuel.
Prime Minister's Information Adviser Zahed Ur Rahman disclosed the development on Tuesday during the government's weekly press briefing at the Secretariat, where ministries and divisions presented updates on ongoing activities and achievements.
He said the project, titled "Modernisation and Expansion of Eastern Refinery Limited (ERL)," would continue until 2030 under the supervision of the Energy and Mineral Resources Division and be implemented by Bangladesh Petroleum Corporation through Eastern Refinery PLC.
The planned expansion is expected to strengthen Bangladesh's energy security, reduce dependence on imported refined petroleum products and ensure the production of more environment-friendly fuel.
According to the briefing, the project received approval at an ECNEC meeting on December 23, 2025, while the Energy and Mineral Resources Division issued the administrative order on February 10 this year.
A committee was formed at the BPC level on May 10 to prepare cost estimates, requests for proposals (RFPs) and expressions of interest (EOIs) for appointing consultants for the mega project. Discussions are also continuing with the Islamic Development Bank regarding financing arrangements.
The adviser said operations at Eastern Refinery resumed on May 8 after remaining shut for nearly three weeks due to a disruption in fuel raw material imports and scheduled maintenance work.
Despite the temporary shutdown, he claimed that fuel supply across the country remained normal, while no load-shedding occurred until May 11 this month.
He said the government was working on investment-friendly and time-befitting policies to encourage environmentally sustainable power generation.
The briefing highlighted several other major government initiatives across different ministries.
He said Bangladesh had strengthened its immunisation drive through a large-scale vaccine procurement programme.
The government has already paid $83.6 million to UNICEF to procure nearly 95 million doses of 10 types of vaccines.
More than 13.2 million doses of MR, TD, BCG, TCV, oral polio and pentavalent vaccines arrived in the country by May 10, while the full supply is expected to be completed by September.
He said there would be no vaccine shortage over the next eight to 12 months.
He also said the Road Transport and Bridges Ministry has taken extensive preparations to ensure smooth travel during the upcoming Eid-ul-Azha holidays.
A central control room will operate from May 20 to 31 to monitor traffic congestion, overcharging and emergency responses.
POS machines will be installed at 12 toll plazas by May 20 to facilitate automated toll collection through debit and credit cards.
Five pairs of special Eid trains and three cattle-special trains will operate during the holiday period, while advance train ticket sales will begin online from May 13.
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