Is exporting condensate really viable?

An article titled "A promising export item" was published in The Independent recently. Our organisation Petrochemical and Refiners Association of Bangladesh (PRAB) has some observations on the matter.
For the record, export of condensate fetches a price of around Tk. 20/ltr or even less. But local refiners pay Tk. 43.62/ltr (including VAT). It may result in phenomenal loss to the natural exchequer if condensate is exported. Actually, the entire condensate is being consumed by the local refining industry. Therefore, it is evident that exporting condensate is not beneficial for the country for time being.
Local refiners use this condensate to produce petrol, diesel, mineral turpentine and solvents. Some who have CRU unit can produce octane. This has resulted in complete fulfilling of the demand for petrol in the country and greatly satisfies demand for solvents in the paint industries amongst others where the alternative would be to import the item. Octane and jet fuel can also be produced from condensate.
Currently    the country produces 5,60,000MT of  condensate. After refining 4,00,000MTof petrol is produced. However, the country’s demand is 2,00,000MT leaving a surplus of 2,00,000MTwhich can be exported. Local demand will also increase in a growing economy like Bangladesh.
Rather than exporting condensate, the government should concentrate on supplying it to the local fractionating plants who can produce fuel products and thereby enhance energy security for the country. In addition, there will be huge contribution to the national exchequer. Another factor is the generation of considerable skilled manpower which can be a tremendous bonus for our population. Any surplus fuel product (like petrol) can be exported. We are fully in agreement with the state minister for power, energy and mineral resources that Bangladesh can become an oil exporting nation.
Refining is a new phenomenon in Bangladesh and with experience they will develop the skill and expertise to carry on producing petroleum products  through  import  of raw material once the gas field condensate extraction expires in four years (with depletion of gas reserves) and hence continue to fulfill local demand and also export.

The writer is President of Petrochemical and Refiners Association of Bangladesh (PRAB)

Is exporting condensate really viable?

An article titled A promising export item was published in The Independent recently. Our organisation Petrochemical and Refiners Association of Bangladesh (PRAB) has some observations on the matter. For the record, export of condensate fetches a price of around Tk. 20/ltr or even less. But local refiners pay Tk. 43.62/ltr (including VAT). It may result in phenomenal loss to the natural exchequer if condensate is exported. Actually, the entire condensate is being consumed by the local refining industry. Therefore, it is evident that exporting condensate is not beneficial for the country for time being. Local refiners use this condensate to produce petrol, diesel, mineral turpentine and solvents. Some who have CRU unit can produce octane. This has resulted in complete fulfilling of the demand for petrol in the country and greatly satisfies demand for solvents in the paint industries amongst others where the alternative would be to import the item. Octane and jet fuel can also be produced from condensate. Currently the country produces 5,60,000MT of condensate. After refining 4,00,000MTof petrol is produced. However, the countrys demand is 2,00,000MT leaving a surplus of 2,00,000MTwhich can be exported. Local demand will also increase in a growing economy like Bangladesh. Rather than exporting condensate, the government should concentrate on supplying it to the local fractionating plants who can produce fuel products and thereby enhance energy security for the country. In addition, there will be huge contribution to the national exchequer. Another factor is the generation of considerable skilled manpower which can be a tremendous bonus for our population. Any surplus fuel product (like petrol) can be exported. We are fully in agreement with the state minister for power, energy and mineral resources that Bangladesh can become an oil exporting nation. Refining is a new phenomenon in Bangladesh and with experience they will develop the skill and expertise to carry on producing petroleum products through import of raw material once the gas field condensate extraction expires in four years (with depletion of gas reserves) and hence continue to fulfill local demand and also export. The writer is President of Petrochemical and Refiners Association of Bangladesh (PRAB)