ERL to resume production on May 5

CHATTOGRAM, Apr 22: Production at Eastern Refinery Limited (ERL), the country's lone refinery, is expected to resume on May 5 after remaining suspended for 20 days.

ERL Managing Director Engineer Sharif Hasnat confirmed the development to The Daily Observer on Wednesday, saying production was halted on April 13 due to a shortage of crude oil.

He said the oil tanker MT Ninemia, carrying 100,000 tonnes of crude oil, is en route to Bangladesh via the Red Sea, bypassing the Strait of Hormuz amid regional tensions.

"The crude oil will help ensure fuel supply in Bangladesh amid regional instability," he said.

Sharif Hasnat added that the vessel departed from Yanbu port on Saudi Arabia's Red Sea coast at 6:00 am (local time) on Tuesday. He said the decision to avoid the Strait of Hormuz was taken due to ongoing geopolitical tensions in the region.

He also said two more crude oil-laden vessels are expected to arrive in May to maintain stable supply.

Meanwhile, another vessel, MT Nordic Pollux, carrying a similar quantity of crude oil, remains stranded at Ras Tanura port in Saudi Arabia's eastern region due to the closure of the Strait of Hormuz.

According to Bangladesh Petroleum Corporation (BPC), Bangladesh's annual fuel oil demand stands at around 7.2 million tonnes, of which about 92 percent is met through imports.