Super Petrochemical seeks approval to import 1.2m tonnes of crude oil

Super Petrochemical PLC has sought permission from the Bangladesh Petroleum Corporation (BPC) to import 1.2 million tonnes of crude oil in 2027 for its under-construction refinery, despite not having government approval for the project.

In a letter sent to the BPC chairman on October 27, the private company sought permission to import four lakh tonnes of light crude and eight lakh tonnes of heavy crude for the year. The proposal has raised questions in the energy sector over the construction and planned operation of the refinery without the required government approval.

Energy experts have warned that establishing a private refinery without proper government approval and regulatory oversight could pose risks to the country’s energy security and existing policies.

According to documents, Super Petrochemical Managing Director Mohammad Mostafa Haider requested the import permission in the letter. The company said the imported crude would be processed to produce petroleum products for supply to the BPC.

However, the latest proposal appears to differ from an earlier plan submitted by the company to the Ministry of Power, Energy and Mineral Resources on July 14.

In that letter, Super Petrochemical said it was constructing a refinery with a capacity of 35,000 barrels per day, designed to process light crude oil. It also expressed interest in importing 2 million tonnes of Saudi Arabian Light crude or UAE’s Murban crude annually.

The October 27 letter, meanwhile, referred to four lakh tonnes of light crude as condensate and sought permission to import another eight lakh tonnes of heavy crude.

Energy experts and former officials have pointed out that condensate and light crude are not the same product and cannot be treated interchangeably.

A former general manager of Eastern Refinery, speaking on condition of anonymity, said it would be incorrect to classify condensate simply as light crude oil. Condensate is a by-product of natural gas extraction, whereas crude oil is obtained from oilfields. The two have different sources and characteristics.

Former Bangladesh Energy Regulatory Commission member and energy expert M Babul-E-Elahi Chowdhury also highlighted the distinction, saying condensate is a light hydrocarbon but cannot be considered identical to the light crude imported for processing at Eastern Refinery.

Meanwhile, documents show that the BPC had asked Super Petrochemical on August 10 to provide details of its expected petroleum product supplies for 2027 to help the state-owned corporation prepare its import plan.

In response, the company’s Chief Executive Officer Pranab Kumar Saha informed the BPC on August 12 that it planned to supply around 1.203 million tonnes of refined petroleum products during 2027.

The proposed supplies included 256,500 tonnes of octane, 119,000 tonnes of petrol, 466,500 tonnes of diesel and 361,000 tonnes of high-sulphur furnace oil (HSFO).

The company also informed the BPC that its under-construction crude distillation unit (CDU), with a capacity of 35,000 barrels per day, was scheduled to begin operations in March 2027.

Attempts to contact Managing Director Mohammad Mostafa Haider and CEO Pranab Kumar Saha for comments were unsuccessful.

BPC Chairman Dr Rafiqul Islam confirmed receiving the company’s letter seeking permission to import crude oil. He said the relevant team at the corporation was reviewing the proposal.

However, he did not comment on how a refinery project in the sensitive energy sector had proceeded with construction without government approval.

Dr M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), said energy was a highly sensitive commodity worldwide and constructing a private refinery without government approval could threaten Bangladesh’s energy security.

He said building such a facility without the necessary approval amounted to a violation of the law and called for accountability and legal action against the company.

Super Petrochemical currently supplies octane, petrol, diesel and other petroleum products to the BPC from its fractionation plant.

According to BPC data, the company supplied a total of 256,037 tonnes of petroleum products, including octane, petrol, diesel, MTT, light MS and SBPS, during the 2024-25 fiscal year.

The company uses naphtha obtained from Eastern Refinery with prior BPC approval, domestic condensate supplied by Petrobangla and imported condensate to produce these products.