CVO Petrochemical to fractionate condensate gas
Sunday, 8 January 2012
Pankaj Dastider
CHITTAGONG, Jan 7: Installation works of CVO Petrochemical Refinery, the country's first ever publicly listed company is speedily progressing to enter production of fuels and chemicals within a year or so.
The company was enlisted with the two bourses of the country six years ago and the sponsor shareholders and the public shareholders hold equal 50 per cent of its three million ordinary shares.
Sponsors said the refinery has been established as a mode of diversification from edible oil industry, earlier known as Chittagong Vegetable Oil, in order to achieve better trading result to woo its share holders who laid immense trust for holding up their investment in the company despite not getting any profit for the last six years due to extreme loss in edible oil business.
They said Chittagong Vegetable Oil Industries Ltd was established as a private limited company in 1984 producing "Phulcopy" brand soybean oil and "Gold Cup" brand vegetable ghee, side by side running their original petrol and lubricants business through a petrol pump set up 65 years back.
Since the sponsors gained wide experience in fuel and lubricants business through running the filling station, Chairman of the Board of Directors Shamsul Alam Shamim conceived an idea of diversifying the edible oil plant to petrochemical production by converting the existing plant.
Installation of machineries and necessary infrastructure at the condensate fractionation refinery's present site at Nasirabad on the Baizid Bostami Road in the city will be completed by October 2012, two months ahead of the schedule set by the Ministry of Mineral Resources, and the company is expecting to enter commercial production by March 2013, sources said.
The refinery has a crude oil tank capacity of 1500 metric tons with necessary pipe line and refined oil tank capacity of 1000 metric tons with intermediate storage tank capacity of 100 metric tons.
The company, after being converted in to a petrochemical refinery, went into trial operation of the Pilot Plant from April 2010 and earned net profit of Tk. 21.69 million which could enable the company to declare 20 per cent stock dividend for the share holders, deputy managing director of the refinery said.
He informed that when the plant goes into commercial operation by the beginning of 2013 the annual turn over of the condensate fractionation refinery will be around Tk 5.7 billion.
"While the Pilot Pant is operating side by side continuing the work of conversion and installation of the original condensate fractionation plant, total sales return over Tk. 238.14 million has been achieved during the fiscal 2010-11 thereby earning an after-tax net profit of Tk 54.05 million," said the DMD of the company Nizam Uddin Mahmood Hossain.
He said they have demolished the existing structures of the vegetable oil plant as per conditions set by the government for a composite refinery plant and are rebuilding the additional structures for installation with an annual production capacity of 5000 metric tons of MS (motor spirit), MTT (mineral turpentine, that is, raw material of paint), high speed diesel, HOBC, superior kerosene oil, NC Thinner, GP Thinner and solvent.
These import substitutes will save huge amount of foreign exchange of the country, he said and added that the country will require huge quantity of high quality paints where the thinner as petrochemical product is used as the main raw material which is imported at the country's valuable foreign exchange.
"In order to install the refinery, machineries and equipments are being imported worth Tk 200 million and for this we have finalized the process for inviting international tenders," he said. A petrochemical expert from the USA has also been engaged with the process, it is learnt.
Mr Nizam told the FE that the present government has put emphasis on setting up refineries in the private sector in a bid to reduce the prices of energy and save huge foreign exchange now being spent on account of government subsidy.
With that aim the government has allowed a number of private entrepreneurs in the oil sector to set up refineries to meet the growing demand of the people. "But the refiners should get necessary allotment of the condensate otherwise there will be no improvement in the situation as desired by the government," he said.
Another source said the PHP Group has set up a condensate fractionation plant at Kumira in Chittagong with an annual production capacity of 50,000 metric tons but is yet to go for production as the government could not allot condensate to the factory in the last three months.
CHITTAGONG, Jan 7: Installation works of CVO Petrochemical Refinery, the country's first ever publicly listed company is speedily progressing to enter production of fuels and chemicals within a year or so.
The company was enlisted with the two bourses of the country six years ago and the sponsor shareholders and the public shareholders hold equal 50 per cent of its three million ordinary shares.
Sponsors said the refinery has been established as a mode of diversification from edible oil industry, earlier known as Chittagong Vegetable Oil, in order to achieve better trading result to woo its share holders who laid immense trust for holding up their investment in the company despite not getting any profit for the last six years due to extreme loss in edible oil business.
They said Chittagong Vegetable Oil Industries Ltd was established as a private limited company in 1984 producing "Phulcopy" brand soybean oil and "Gold Cup" brand vegetable ghee, side by side running their original petrol and lubricants business through a petrol pump set up 65 years back.
Since the sponsors gained wide experience in fuel and lubricants business through running the filling station, Chairman of the Board of Directors Shamsul Alam Shamim conceived an idea of diversifying the edible oil plant to petrochemical production by converting the existing plant.
Installation of machineries and necessary infrastructure at the condensate fractionation refinery's present site at Nasirabad on the Baizid Bostami Road in the city will be completed by October 2012, two months ahead of the schedule set by the Ministry of Mineral Resources, and the company is expecting to enter commercial production by March 2013, sources said.
The refinery has a crude oil tank capacity of 1500 metric tons with necessary pipe line and refined oil tank capacity of 1000 metric tons with intermediate storage tank capacity of 100 metric tons.
The company, after being converted in to a petrochemical refinery, went into trial operation of the Pilot Plant from April 2010 and earned net profit of Tk. 21.69 million which could enable the company to declare 20 per cent stock dividend for the share holders, deputy managing director of the refinery said.
He informed that when the plant goes into commercial operation by the beginning of 2013 the annual turn over of the condensate fractionation refinery will be around Tk 5.7 billion.
"While the Pilot Pant is operating side by side continuing the work of conversion and installation of the original condensate fractionation plant, total sales return over Tk. 238.14 million has been achieved during the fiscal 2010-11 thereby earning an after-tax net profit of Tk 54.05 million," said the DMD of the company Nizam Uddin Mahmood Hossain.
He said they have demolished the existing structures of the vegetable oil plant as per conditions set by the government for a composite refinery plant and are rebuilding the additional structures for installation with an annual production capacity of 5000 metric tons of MS (motor spirit), MTT (mineral turpentine, that is, raw material of paint), high speed diesel, HOBC, superior kerosene oil, NC Thinner, GP Thinner and solvent.
These import substitutes will save huge amount of foreign exchange of the country, he said and added that the country will require huge quantity of high quality paints where the thinner as petrochemical product is used as the main raw material which is imported at the country's valuable foreign exchange.
"In order to install the refinery, machineries and equipments are being imported worth Tk 200 million and for this we have finalized the process for inviting international tenders," he said. A petrochemical expert from the USA has also been engaged with the process, it is learnt.
Mr Nizam told the FE that the present government has put emphasis on setting up refineries in the private sector in a bid to reduce the prices of energy and save huge foreign exchange now being spent on account of government subsidy.
With that aim the government has allowed a number of private entrepreneurs in the oil sector to set up refineries to meet the growing demand of the people. "But the refiners should get necessary allotment of the condensate otherwise there will be no improvement in the situation as desired by the government," he said.
Another source said the PHP Group has set up a condensate fractionation plant at Kumira in Chittagong with an annual production capacity of 50,000 metric tons but is yet to go for production as the government could not allot condensate to the factory in the last three months.