Energy Bangla

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Dhaka Tuesday,  May 23, 2017

Deal signed for FEED of the 2nd unit of ERL

EB Report

Eastern Refinery Limited (ERL) is going to enhance its capacity by setting up another Refinery unit. The state-run Bangladesh Petroleum Corporation (BPC) has taken initiatives to conduct the ‘installation of ERL Unit-2’ project. BPC signed a deal on Wednesday with a French company called Technip to install this second unit at ERL.

According to the deal, Technip, which installed the first unit of ERL will be responsible for a Front End Engineering Design (FEED) for the second refinery unit with a capacity of processing three million tons of crude oil every year.

BPC’s Director (operations) Syed Md. Mojammel and Technip’s sales manager Didier Licuex and Technip Malaysia’s director Amrar Bin Ahmed signed the deal on behalf of their respective organizations in presence of the state minister for Power, Energy and Mineral Resources Nasrul Hamid.

The deal was signed at Power, Energy and Mineral Resources Ministry at the Secretariat under the Speedy Supply of Power and Energy (Special Provisions) Act 2010.

It has already a capacity of refining 15 lakh tons of petroleum fuels annually at the ERL unit-1 which will rise to 45 lakh tons once the second unit is installed. That means, by installing this 2nd unit the country is going to triple its capacity. The project would cost around $92.38 million which again will help save Tk 800-900 crore foreign currency from fuel imports per year. The unit is estimated to be operational by December 2018.

State minister Nasrul Hamid said that, the country would save at least 800-900 crore Tk by just refining the crude oil thus the cost of setting up the 2nd unit would be covered up just after 5-6 years after it starts operation.

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