China firm keen to fund Eastern Refinery

Wuhuan Engineering Company Ltd, a Chinese government-owned company, has evinced keen interest in providing financial support for the development of Eastern Refinery Limited (ERL) in Chittagong. In a letter, the company on April 5 wrote that the Chinese government has given consent to provide financial support for ERL-2 on professional buyer’s credit. “We understand that the Bangladesh government is highly interested in the development of ERL-2 as a complete new plant and now has already finalised a project management team for the total work for the management of the project,” said Liu Jiaming, vice chief economist of Wuhuan Engineering Company Ltd.
Wuhuan Engineering Company Ltd wants to finance the project for engineering procurement construction (EPC). Jiaming also urged the Bangladesh government to proceed with government clearance and inform the Chinese embassy to work on the project.
Meanwhile, the power, energy and mineral resources ministry has prepared a summary in connection with the project, saying that a draft details project plan (DPP) has been prepared, which would be sent soon to the Planning Commission.
According to the DPP, some Tk. 15,000 crore would be required to implement the project. The ministry has also sent a letter to the finance ministry to ensure necessary funds from the development partners.            
By establishing the plant, the country is going to triple its capacity to refine 45 lakh tonnes of petroleum annually by implementing a Tk. 8,949-crore project that will help save Tk. 1,500 crore foreign currency in fuel imports per year.
The project, ‘Eastern Refinery Unit 2’, has been undertaken by the Bangladesh Petroleum Corporation (BPC).
The BPC is set to operate the proposed ERL unit by December 2018.
It has spent Tk. 26,940.85 crore to import 53.93 lakh tonnes of refined and crude oil in the last fiscal year, according to the state-run oil monopoly.
Meanwhile, the BPC and a French firm, Technip, have signed a memorandum of understanding (MoU) to set up a new second unit worth Tk. 8,949 crore at the ERL for refining 3.0 million tonnes of crude annually under a joint venture (JV) project.
The BPC will operate the planned ERL Unit-2 by December 2018, according to the MoU.
The ERL currently refines 1.5 million
tonnes of crude a year. When the second unit becomes operational, the total refining capacity of the ERL will reach 4.5 million tonnes
annually.

China firm keen to fund Eastern Refinery

Wuhuan Engineering Company Ltd, a Chinese government-owned company, has evinced keen interest in providing financial support for the development of Eastern Refinery Limited (ERL) in Chittagong. In a letter, the company on April 5 wrote that the Chinese government has given consent to provide financial support for ERL-2 on professional buyers credit. We understand that the Bangladesh government is highly interested in the development of ERL-2 as a complete new plant and now has already finalised a project management team for the total work for the management of the project, said Liu Jiaming, vice chief economist of Wuhuan Engineering Company Ltd. Wuhuan Engineering Company Ltd wants to finance the project for engineering procurement construction (EPC). Jiaming also urged the Bangladesh government to proceed with government clearance and inform the Chinese embassy to work on the project. Meanwhile, the power, energy and mineral resources ministry has prepared a summary in connection with the project, saying that a draft details project plan (DPP) has been prepared, which would be sent soon to the Planning Commission. According to the DPP, some Tk. 15,000 crore would be required to implement the project. The ministry has also sent a letter to the finance ministry to ensure necessary funds from the development partners. By establishing the plant, the country is going to triple its capacity to refine 45 lakh tonnes of petroleum annually by implementing a Tk. 8,949-crore project that will help save Tk. 1,500 crore foreign currency in fuel imports per year. The project, Eastern Refinery Unit 2, has been undertaken by the Bangladesh Petroleum Corporation (BPC). The BPC is set to operate the proposed ERL unit by December 2018. It has spent Tk. 26,940.85 crore to import 53.93 lakh tonnes of refined and crude oil in the last fiscal year, according to the state-run oil monopoly. Meanwhile, the BPC and a French firm, Technip, have signed a memorandum of understanding (MoU) to set up a new second unit worth Tk. 8,949 crore at the ERL for refining 3.0 million tonnes of crude annually under a joint venture (JV) project. The BPC will operate the planned ERL Unit-2 by December 2018, according to the MoU. The ERL currently refines 1.5 million tonnes of crude a year. When the second unit becomes operational, the total refining capacity of the ERL will reach 4.5 million tonnes annually.