Construction of ERL unit-2 to start Sept

In order to ensure energy security the government is going to start the construction of the second unit of Eastern Refinery Limited (ERL). The new unit will have a capacity to process 3 million metric tonnes of crude oil per year, the physical work of which start by September, a top official said. According to energy division information, the present yearly crude oil processing capacity of the ERL is 1.5 million metric tonnes. In contrast, the current demand of Petroleum Product (POL) stands nearly 6.5 million metric tonnes per year.

On implementation of the Unit-2 Project of ERL, crude oil processing capacity of ERL will increase to 4.5 million metric tonnes per year and will bring in the much needed equilibrium between demand and supply of petroleum products in the country. It will also ensure production of eco-friendly motor gasoline and diesel oil and will ensure energy security of the country.

State-owned Bangladesh Petroleum Corporation Chairmen Mohammad Shamsur Rahman told Bangladesh Post, “Technip of France has submitted technical offer for the appointment as the contractor for the ERL on May 2 last which is now under evaluation. Hope they will submit the financial offer by May 30.” “We hope the physical work will be started by September this year, and the total project will be completed within next five years,” he added.

BPC official said the evaluation of the technical offer would be completed within the current month. After the evaluation, the Technip will be appointed as the contractor for construction of the project. Meanwhile, experts of the ministry have reviewed of the 'Front End Engineering Design' (FEED) of the project. After revision, the FEED will be approved by the ministry before going to implementation.

Sources said the total cost of the project has been estimated at $1.7 billion. The project would be done with own financing of the government. The government earlier signed an agreement with the Technip of France for preparation of documents on 'Front End Engineering Design (FEED) for construction of the second unit of ERL.

The proposal in this connection was approved in the Cabinet Purchase Committee held in the last week of December 2016. The design cost around Tk 2.69 billion. In this connection, another agreement was signed with Technip in 2015 last for construction of the second unit of ERL. The sources said the Technip of France had constructed the first unit of ERL in 1967. In the new refinery, three million tonnes of crude petroleum will be refined. The project includes construction of processing units, storage tanks, and installation of pipelines, distillation unit, and other associated facilities.