2nd ERL unit to ensure fuel security

Nazimuddin Shyamol | Published: July 02, 2023 22:19:28

CHATTOGRAM, July 02: The second unit of the Eastern Refinery Limited (ERL), which is likely to be constructed soon, will meet the fuel demand and ensure fuel security of the country.
Once the second unit of ERL is completed, it will meet 100 per cent demand for jet fuel and gasoline.
Sources said the second unit of ERL will be set up using state-of-the-art technology to refine various types of crude oil, including Russian crude oil. The existing only state-owned refinery ERL does not have the capacity to refine Russian crude oil.
However, Bangladesh will be able to import and refine an additional three million MT of eco-friendly Euro 5 fuel oil per year at the second unit of ERL.
The feasibility study report of the second unit of ERL showed annual savings of USD 237 million with savings of about USD 11 per barrel. Moreover, fuel oil can be exported after meeting the local demand.
Officials of ERL said the production of two new petroleum products, lube based oil and sulfur, will be possible at the second unit of ERL.
Managing Director of ERL Engineer Md Lokman said, "The government has already allocated fund for the project. A total of 70 per cent of the fund has been allocated by the government as loan while the rest 30 per cent will be allocated by Bangladesh Petroleum Corporation (BPC)."
He also said, "We have finalised the 'Front in Engineering Design' of the second unit of ERL under Euro 5 standard. We are waiting for the approval of the Detailed Project Proposal (DPP) and calling for the tender of the project."
"In order to ensure energy security of the country, the government has accepted the construction of Unit-2 Project of ERL having 3.0 million MT of crude oil processing capacity per year. After the implementation of the project, the crude oil processing capacity of ERL will increase to 4.5 million MT per year. It will bring in the much-needed equilibrium between the demand and supply of petroleum products in the country. It will also ensure the energy security of the country and production of eco-friendly motor gasoline and diesel oil," he added.
The present crude oil processing capacity of ERL is 1.5 million MT per year. The process of the second unit of the ERL started in July, 2018 to meet the ongoing fuel demand.
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