Govt to import 120,000 tonnes furnace oil from Vietnam

The government will import 120,000 tonnes of furnace oil from Vietnam to meet its growing demand particularly for the rental and quick power plants, reports UNB. According to official sources, the Energy Ministry has forwarded a proposal to the Cabinet Division to place it to the Cabinet Purchase Committee's meeting scheduled for today (Sunday). The Energy Ministry officials said they have finalised a deal recently with Vietnam's Petrolimex to import the bulk of furnace oil which would cost approximately US$ 82.464 million. The premium of per tonne fuel was proposed to be $32. "Considering the proposed premium on the fuel, the 120,000 tonnes of furnace oil will possibly cost Tk 6.1848 billion," said an official preferring anonymity as he is not officially authorised to speak on the issue. The Purchase Committee is also expected to fix a premium for import of 60,000 tonnes furnace oil from the Maldives' MNOC. Cabinet Division officials said the Purchase body may consider a total of 15 proposals including the fuel imports and gas pipeline construction in different places of the country. The government needs to import some 852,000 tonnes of furnace oil for six months from July to December 2011. The Energy Ministry official said the ministry has set this requirement taking into account the use of the petroleum fuel in power plants and for other purposes, including its use in the industries where gas is not available. Bangladesh Petroleum Corporation (BPC) has so far received assurances from different sources to have the supply of a total of 765,000 tonnes of the fuel. Negotiations are on with different sources to meet the remaining demand, according to the source. Among the other sources for supply of furnace oil, Petco of Malaysia has assured of providing 140,000 tonnes, while ENCO of United Arab Emirate 80,000 tonnes, MIDOR of Egypt 100,000 tonnes, Chinese Petrochina 20,000 tonnes, Bumisiak of Indonesia 100,000 tonnes and MNOC of the Maldives 60,000 tonnes. Besides, BPC will get 145,000 tonnes of furnace oil from the state-owned Eastern Refinery Limited (ERL). The demand for furnace oil has shot up in recent months following the installation of liquid fuel-fired rental power plants in private sector. The government, however, has taken the move to set up the liquid fuel-fired plants amid severe gas crisis. The state-owned BPC is responsible to ensure supply of the petroleum product.