Bangladesh to more than triple refining capacity
4/19/2016 12:00:00 AM
DHAKA, April 19 (Reuters) -- Eastern Refinery Ltd. (ERL), which supplies around 40% of Bangladesh's fuel needs, said it plans to more than triple its oil-processing capacity with a 3.5-MMtpy unit to help meet rising domestic demand.
The new unit at Patenga refinery in Chittagong will cost $1.7 billion, Nasrul Hamid Khan, Bangladesh's junior minister for power, energy and mineral resources, said on Tuesday.
The expansion will be mainly financed by ERL, according to a senior official of the ministry.
ERL, a subsidiary of state-run Bangladesh Petroleum Corp. (BPC), signed a deal on Tuesday with Engineers India Ltd., which will provide management consultant services for the expansion project.
The government will decide on the project developer through a tender.
ERL, Bangladesh's sole refiner, currently processes 1.3 MMtpy of crude oil annually.
(Reporting By Serajul Quadir and Nazimuddin Shyamol from Chittagong; Editing by Ryan Woo)
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