Bangladesh Petroleum Corporation is expected to treble the country’s crude oil refining capacity to 4.5 million tonnes from the existing 1.5 million tonnes.
The consortium led by Technip, the country’s sole refinery, having the crude oil refinery capacity of 1.5 Mtpa in port city Chattogram.
Now, Sinopec is going to team up with French company Technip to jointly build a new 3.0 million tonnes per year capacity crude oil refinery worth US$1.15 billion.
Currently, Bangladesh imports annually around 7.50 million tonnes of crude and refined petroleum products combined to meet local demand.
Once implemented, the new refinery could help the country save $220 million every year. The refinery could enable the country to process any kind of crude oil and it might put Bangladesh on the path to becoming a refined petroleum product exporting country.
BPC already purchased land from the Ministry of Industries for Tk 2.30 billion for the refinery.
Sinopec has already completed preliminary negotiations with Technip to build a consortium for the construction of the proposed refinery, according to Bangladesh Petroleum Corporation (BPC).
Technip already submitted the necessary technical and financial documents to build the refinery.
Nepal has already shown interest to import refined petroleum products from Bangladesh and agreed to ink a memorandum of understanding (MoU) in this regard.
Surplus finished petroleum products can be exported to Sri Lanka, Bhutan, Myanmar and the north-eastern parts of India as well.
Earlier, the crude oil refinery project with of 1.5 Mtpa capacity was planned in 2015. An MOU between BPC and Technip was inked on November 11, 2015. But it did not get pace due to non-assurance of funding.
The BPC later decided to build it with own fund having support from the government to give momentum to the project works.
Later, the BPC on January 18, 2017, assigned Technip to carry out the front-end engineering and design (FEED) for the proposed refinery at a cost of US$ 32.10 million.
Technip has submitted the final FEED over the refinery project, which has also been reviewed and accepted by the BPC.
Sinopec has forecasted on the growing lubricants market and the opportunity to be a refined petroleum product exporting country in Bangladesh.