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The Bangladesh Petroleum Corporation (BPC) has endorsed S Alam Group’s proposal to construct a second unit for Eastern Refinery Limited (ERL), the country’s sole state-run fuel oil refinery. The BPC submitted a review report to the Energy Division on 9 July, recommending the proposal for approval. If Prime Minister Sheikh Hasina approves it, a memorandum of understanding (MoU) will be signed between Eastern Refinery and S Alam Group.
S Alam’s joint funding proposal, submitted in January, follows a new private-sector refinery policy announced last November. A seven-member BPC committee has assessed the proposal, and the Energy Division will review it before final approval. If endorsed, a non-binding MoU will be signed, followed by a feasibility study. The project, estimated to cost Tk25,000 crore, aims to refine 3 million tonnes of crude oil annually, saving Tk11 per litre of refined fuel oil.
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