The proposal to set up a refinery with S Alam was cancelled

The Ministry of Power, Energy and Mineral Resources has canceled the refinery construction proposal with S Alam Group for the construction of fuel oil refinery. The Eastern Refinery Limited-II project was to be implemented as a joint venture between Bangladesh Petroleum Corporation (BPC)/ERL and S Alam Group.

This information was informed in a circular signed by Mohammad Shafiullah, Information and Public Relations Officer of the Ministry of Power, Energy and Mineral Resources on Thursday (August 29).

It has been said that the project titled 'Installation of ERL Unit-2' proposed to be implemented by Eastern Refinery Limited (ERL) under BPC has been decided to cancel the implementation proposal under the public private joint venture agreement between BPC/ERL and S Alam Group.

The circular also said that at the same time it has been decided to send a letter to the BPC to estimate the DPP of the project as per the updated rate of foreign exchange and send the reconstituted DPP to the Planning Commission with all purchase plans formulated as per PPR-2008.

The country's only fuel oil refinery Eastern Refinery Limited (ERL) was established in Chittagong in 1968. The company can refine 1.5 lakh tonnes of fuel oil annually. It is operated by the Bangladesh Petroleum Corporation (BPC) under the Department of Energy and Mineral Resources. Another unit of 3 million tonne capacity is planned for the new project. The project named 'Installation of ERL-2' was taken up in 2012. The project, if implemented, is expected to save around $240 million annually. The Energy Department took a policy decision with the private company S Alam Group to implement this project.

Bangladesh /KH