BPC moves to set up second largest oil depot at Mongla
Saturday, 20 October 2007
Jasim Uddin Haroon
The Bangladesh Petroleum Corporation (BPC) has taken a move for constructing the country's second largest oil depot at Mongla, Khulna to strengthen and stabilise fuel supply in northern districts.
"We will invite international tender for the construction of the second largest oil installation at Mongla aiming to ensure smooth supply of fuel in the northern districts," Syed Mozammel Hoque, Director, Operation of the BPC, told the FE.
The oil depot will have storage capacity of 60,000 tonnes.
The main fuel installation is located at Guptakhal in Chittagong and its storage capacity is 100,000 tonnes.
The BPC, the state-owned petroleum entity, sends fuel to other parts of the country, mainly southern and northern areas, through river routes from the main depot.
BPC sources said northern districts are normally hit by short supply of fuel during the winter season as oil tankers frequently run aground due to fall in water levels in the rivers.
Oil companies in India want to export fuel at competitive prices to Bangladesh's northern region through river routes, the BPC sources added.
They said the region lacks adequate installations to store fuel.
Official sources said successful completion of the installation of the depot will minimise freight cost and transit loss a great extent.
Currently, there is one small oil installation in the region for storing around 10,000 tonnes of fuel.
However, the BPC has earmarked its own land in Mongla Port area for constructing the second main installation at its own land.
"We have 25 acres of land at Mongla Port area and we have earmarked 15 acres of land for the second largest oil installation," Mozammel Hoque added.
A joint venture liquefied petroleum gas plant will be set up on the remaining land at the area, BPC sources said.
BPC officials said that the corporation had estimated the cost of the project at Tk 460 million, which will be borne by BPC's three subsidiaries.
The duration of 36 months has been set for completion of civil and other related works.
Sources said the BPC might float international tender for the installation in November next and the successful bidder might be awarded the work sometime in January or February in 2008.
The Bangladesh Petroleum Corporation (BPC) has taken a move for constructing the country's second largest oil depot at Mongla, Khulna to strengthen and stabilise fuel supply in northern districts.
"We will invite international tender for the construction of the second largest oil installation at Mongla aiming to ensure smooth supply of fuel in the northern districts," Syed Mozammel Hoque, Director, Operation of the BPC, told the FE.
The oil depot will have storage capacity of 60,000 tonnes.
The main fuel installation is located at Guptakhal in Chittagong and its storage capacity is 100,000 tonnes.
The BPC, the state-owned petroleum entity, sends fuel to other parts of the country, mainly southern and northern areas, through river routes from the main depot.
BPC sources said northern districts are normally hit by short supply of fuel during the winter season as oil tankers frequently run aground due to fall in water levels in the rivers.
Oil companies in India want to export fuel at competitive prices to Bangladesh's northern region through river routes, the BPC sources added.
They said the region lacks adequate installations to store fuel.
Official sources said successful completion of the installation of the depot will minimise freight cost and transit loss a great extent.
Currently, there is one small oil installation in the region for storing around 10,000 tonnes of fuel.
However, the BPC has earmarked its own land in Mongla Port area for constructing the second main installation at its own land.
"We have 25 acres of land at Mongla Port area and we have earmarked 15 acres of land for the second largest oil installation," Mozammel Hoque added.
A joint venture liquefied petroleum gas plant will be set up on the remaining land at the area, BPC sources said.
BPC officials said that the corporation had estimated the cost of the project at Tk 460 million, which will be borne by BPC's three subsidiaries.
The duration of 36 months has been set for completion of civil and other related works.
Sources said the BPC might float international tender for the installation in November next and the successful bidder might be awarded the work sometime in January or February in 2008.