$110m local Naptha refinery to produce high octane
Monday, 27 July 2009
Jasim Uddin Haroon
A local company Sunday said it is setting up a refinery by investing US$ 110 million in Chittagong, which will use locally available raw material Naptha to produce high octane.
After implementation of the project by 2011, it will meet the country's total demand for high octane and save foreign currency worth more than Tk 350 billion per annum. The country's annual demand for the high octane is approximately 100,000 tonnes.
"We have already finished land development works recently at Patenga in Chittagong and we expect to go into operation sometime in 2011," Azam J Chowdhury, a leading entrepreneur and chairman of East Coast Group told the FE Sunday.
The fuel refinery company, which got the government's approval three years back, has been named Mobil Jamuna Fuels Ltd (MJFL).
Apart from East Coast Group, Jamuna Oil Company will hold a 25 per cent stake of the MJFL while IFC, a subsidiary of the World
Bank and the DG of Germany and the FMO of the Netherlands will also hold equities of the project.
The fuel plant will use Naptha, a by product of the state-owned Eastern Refinery Limited (ERL) and produce high octane or octane 95.
The ERL, the country's lone oil refinery generally exports its by-product of around 100,000 tonnes of Naptha a year, as there is no scope for refining it within the country.
"We approached the government with the offer to pay more than the price reporting agency Platts quotes per barrel
and the government agreed to our proposal," Azam, who is also managing director of the fuel refinery plant-MJFL- told the FE.
Mr Azam, holding a large stake of MJFL, said he is implementing the project with the technical assistance of the UOP LLC, a US based company, and it will be able to produce up to 150,000 tonnes a year initially with an option for future expansion.
"It has huge export market, I will export the surplus," Azam added.
Asif Malik, chief operating officer of the MJFL told the FE: "We will also produce liquefied petroleum gas (LPG) from the plant by using the same raw material."
The plant however will require 1.0 megawatt power plant.
Mr Azam said it will also set up a 5.0 megawatt power plant by using left over of the plant adding: "It will meet our power need and the extra power will be added to the national grid."
The country's annual demand for the fuel is around 3.8 million tonnes including 1.2 million tonnes of crude oil.
A local company Sunday said it is setting up a refinery by investing US$ 110 million in Chittagong, which will use locally available raw material Naptha to produce high octane.
After implementation of the project by 2011, it will meet the country's total demand for high octane and save foreign currency worth more than Tk 350 billion per annum. The country's annual demand for the high octane is approximately 100,000 tonnes.
"We have already finished land development works recently at Patenga in Chittagong and we expect to go into operation sometime in 2011," Azam J Chowdhury, a leading entrepreneur and chairman of East Coast Group told the FE Sunday.
The fuel refinery company, which got the government's approval three years back, has been named Mobil Jamuna Fuels Ltd (MJFL).
Apart from East Coast Group, Jamuna Oil Company will hold a 25 per cent stake of the MJFL while IFC, a subsidiary of the World
Bank and the DG of Germany and the FMO of the Netherlands will also hold equities of the project.
The fuel plant will use Naptha, a by product of the state-owned Eastern Refinery Limited (ERL) and produce high octane or octane 95.
The ERL, the country's lone oil refinery generally exports its by-product of around 100,000 tonnes of Naptha a year, as there is no scope for refining it within the country.
"We approached the government with the offer to pay more than the price reporting agency Platts quotes per barrel
and the government agreed to our proposal," Azam, who is also managing director of the fuel refinery plant-MJFL- told the FE.
Mr Azam, holding a large stake of MJFL, said he is implementing the project with the technical assistance of the UOP LLC, a US based company, and it will be able to produce up to 150,000 tonnes a year initially with an option for future expansion.
"It has huge export market, I will export the surplus," Azam added.
Asif Malik, chief operating officer of the MJFL told the FE: "We will also produce liquefied petroleum gas (LPG) from the plant by using the same raw material."
The plant however will require 1.0 megawatt power plant.
Mr Azam said it will also set up a 5.0 megawatt power plant by using left over of the plant adding: "It will meet our power need and the extra power will be added to the national grid."
The country's annual demand for the fuel is around 3.8 million tonnes including 1.2 million tonnes of crude oil.