After remaining shut for nearly a month, the country’s only state-owned oil refinery, Eastern Refinery PLC, is set to resume operations as crude oil supply stabilizes.
Officials concerned said the refinery will restart its processing activities from May 7.
Due to ongoing geopolitical tensions and conflict in the Middle East, crude oil imports were significantly disrupted. In particular, disruption in tanker movement through the Strait of Hormuz caused a halt in crude oil arrivals since February 18. As a result, the refinery’s crude processing unit was shut down from April 14, marking the first such suspension since its commercial operation began in 1968.
Managing Director of ERL, Md. Sharif Hasnat said that a 100,000-ton crude oil shipment from Saudi Arabia is expected to arrive at the Port of Chattogram between May 5–6. Refinery operations are expected to resume from May 7–8 after unloading begins.
He said, “There is currently no major shortage of crude oil. Another shipment is expected within this month, which will help maintain a stable supply chain.”
According to government sources, an alternative route has been used to import crude oil via the Red Sea, with a vessel named “MT Ninemia” carrying 100,000 tons of crude oil. Additionally, another shipment a vessel Name 'MT Fossil' of the same volume is expected from the United Arab Emirates within this month.
The Bangladesh Petroleum Corporation (BPC) typically imports Arabian Light crude from Saudi Arabia and Murban crude from the UAE. The refinery processes around 1.5 million metric tons of crude oil annually.
Meanwhile, the Bangladesh Shipping Corporation (BSC) has stated that new shipment plans have been initiated to stabilize the country’s fuel supply chain.
Experts say the resumption of Eastern Refinery’s operations will bring relief to the country’s fuel supply system and help reduce import dependency to some extent. However, they emphasize that long-term energy security will require capacity expansion and diversified sourcing.
Overall, the restart of Eastern Refinery after a prolonged shutdown is being viewed as an important positive development for Bangladesh’s energy sector.
