Eastern Refinery upgrade to triple annual capacity to 4.5m tonnes

The Eastern Refinery is set to triple its annual refining capacity to 4.5 million metric tonnes from 1.5 million tonnes under a major modernisation and expansion project financed by the Islamic Development Bank (IsDB).

The IsDB will provide Tk 12,000 crore ($1.004 billion) in financing for the project, which is aimed at strengthening Bangladesh’s energy security and reducing its reliance on imported refined fuel.

A financing agreement for the “Modernization and Expansion of Eastern Refinery in Bangladesh” project was signed on Thursday, according to the Ministry of Finance.

ERD Additional Secretary Dr Mohammad Mizanur Rahman signed the agreement on behalf of Bangladesh, while IsDB Director General Anas Eissami signed for the development bank. Prime Minister Tarique Rahman and IsDB Group Chairman Dr Muhammad Al Jasser attended the signing ceremony.

The project is expected to be implemented by Bangladesh Petroleum Corporation (BPC) under the Energy and Mineral Resources Division.

According to the Economic Relations Division (ERD), the financing represents the largest single-project investment by IsDB in Bangladesh. The expanded refinery will also be capable of producing Euro-5 standard petroleum products.

The government expects the project to reduce imports of refined petroleum, save foreign exchange, increase domestic fuel production and strengthen the country’s overall energy security.