Eastern refinery modernization to boost annual capacity to 4.5m Tonnes

The Eastern refinery is being upgraded to enhance the energy security of Bangladesh. Once the upgrading is done, its refining capacity will triple to reach 4.5 million metric tonnes annually from 1.5 million metric tonnes.

The Islamic Development Bank (IsDB) will give Tk 12,000 crore (or $1,004.29 million) as the finance for the project.

In a financing agreement related to the “Modernization and Expansion of Eastern Refinery in Bangladesh” project, signed on Thursday (September 3), Bangladesh and IsDB are set to work on the expansion of Eastern refinery in Bangladesh.

This information has been provided by the Ministry of Finance on Saturday.

ERD Additional Secretary Dr Mohammad Mizanur Rahman signed the agreement for Bangladesh while IsDB Director General Anas Eissami signed the agreement for IsDB. Prime Minister Tarique Rahman and IsDB Group Chairman Dr Muhammad Al Jasser were present during the signing of the deal.

It is expected that the project will be executed by BPC of the Energy and Mineral Resources Division of Bangladesh.

According to the ERD, this is the largest investment made by IsDB in a single project in Bangladesh. The expansion will also enable production of Euro-5 standard petroleum products.

The government anticipates that the project will decrease the importation of refined fuel, conserve foreign exchange, enhance fuel production capability, and improve the nation’s energy security.

-AJM