September 25, 2020, 9:26 pm


Abu Taher Bappa

Published:
2020-09-12 07:10:18 BdST

BPC to import 1.25m tonnes of petroleum products


The Bangladesh Petroleum Corporation (BPC) will import an estimated 1.25 million tonnes of refined petroleum products from January to June 2021.

The amount is up 18.39 percent from the corresponding period of the current year.

The BPC is receiving bids to import up to 990,000 tonnes of 0.005-percent sulfur gasoil (diesel) and 120,000-tonnes of jet A-1 fuel.

It will also import 80,000-tonne marine fuel having 0.5-percent sulfur, 45,000 tonne 95 RON gasoline (octane) and 20,000-tonne high sulfur fuel oil (furnace oil) with 3.5-percent sulfur content.

"We've projected a higher demand for petroleum products in the first half (H1) of next year considering that the economy will rebound with the ease of the current coronavirus pandemic," said BPC director (operations and planning) Syed Mehdi Hasan.

Increased refined oil might be needed in power plants, irrigation and transportation, he said.

The state-run BPC intends to import petroleum products categorising them under A, B, C, D and E packages on a CFR basis at Chattogram port.

Under package A, the bid-winning international oil supplier will provide 480,000-510,000 tonnes of 0.005 per cent sulfur gasoil and 60,000 tonnes of jet A-1 fuel.

Under package B, the bidder will supply 450,000-480,000 tonnes of diesel and 60,000-tonne jet fuel.

Under package C, the supplier will provide an estimated 20,000-tonne HSFO with 3.5-percent sulfur.

Under package D, the bidder will supply approximately 45,000-tonne 95 RON gasoline.

Under package E, the bid winner will supply around 80,000-tonne marine fuel with 0.5-percent sulfur.

Bangladesh initiated to import cleaner gasoil and marine fuel from July 2020.

The BPC intends to import the quantity of refined products in H1 of 2021 as there is a government decision to import half the required petroleum products through tendering.

The remaining half will be imported through negotiations with suppliers, disclosed Mr Hasan.

The corporation invited tenders on September 07 and the deadline for bid submission is September 16 (1500 hours/BST).

Delivery should be made at Chattogram port on a CFR basis.

The validity of the bids should be up to December 31, 2020, until 1700 hours/BST.

For H1 of 2020, the BPC had floated tenders to import up to 1.06-million tonnes of oil products, down by 24.28 percent compared to H1 of 2019.

Unipec Singapore Pte and Vitol Asia Singapore bagged the tender.

The BPC deferred nine oil cargoes with 30,000-tonne capacity each during April-May 2020 as Bangladesh was under a nationwide shutdown.

The virus lockdown restricted all types of transportation, including air, water and rail, and movement of private vehicles from March 26 to May 30.

The BPC imported up to 1.40-million tonnes of 0.05-percent sulfur gasoil, jet A-1 fuel and 180 CST high sulfur fuel and 95 RON gasoline combined during H1 of 2019.

It is importing 1.04-million tonne 50 ppm sulfur gasoil, jet A-1 fuel, 180 CST high sulfur fuel oil and 95 RON gasoline combined for delivery during July-December 2020 through tendering.

This is 22.67-percent lower than the volume it sought in its tender for the first half of 2020, which totalled 1.06-million tonnes of refined oil products.

Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.


Popular Article from Business