MoU with India for LPG plant today

Two more major projects are now coming up to feed the growing energy need by setting up the country's largest ever LPG (liquefied petroleum gas) plant and also a second unit of the Eastern Refinery Limited(ERL) in the port city.

To this effect, Bangladesh Petroleum Corporation (BPC) will sign a memorandum of understanding (MoU) with Indian Oil Corporation Limited (IOCL) in the capital today. The other deal will be inked between the BPC and an Indian firm -- Engineers India Limited -- on April 19 to appoint consultants for implementation of the second unit of ERL.

State Minister for Power and Energy Nasrul Hamid and Indian State Minister for petroleum and Natural Gas Dharmendra Pradhan are expected to witness the MoU singing ceremony.

According to the project detail, the IOCL would conduct the feasibility study for setting up the plant. The ministry concerned is expected to appoint the PMC (project management consultant) for the second unit to install the ERL by 2018 for boosting the country's refinery sector.

The present crude oil processing (COP) capacity of ERL is 15 lakh tonnes per year whereas the current demand for petroleum products stands at nearly 64 lakh tonnes per year. To ensure energy security, the government accepted the construction of unit-2 project of ERL having 30 lakh tonnes of COP capacity. On implementation of the unit, the COP capacity of ERL will increase to 45 lakh tonnes per year, and it will bring in the much-needed equilibrium between demand and supply of petroleum products. It will also ensure production of eco-friendly motor gasoline and diesel oil, according to the project detail.

Secretary-in-Charge of the energy division Nazimuddin Chowdhury said the second unit of ERL was likely to be set up involving Tk 8,949 crore by 2018 with a capacity of refining around 3 million tonnes of crude oil annually. The ERL was set up at Patenga near the Chittagong port in 1968.