Uncertainty has gripped a project meant for installing the second unit of the state-owned Eastern Refinery Limited (ERL) due to delaying tactics.
The project to build the second unit of the ERL in order to increase the refining capacity of the company has not been launched even in six years.
The implementing agency, Technip of France, submitted the engineering design and layout to the ERL authority. And that's all-Technip left the project last May.
ERL general manager Raihan Ahamad said, "French company Technip refused to work for the project last May. It is not working now."
"We've sent the development project proposal (DPP), made as per Technip's design, to the ministry. The ministry is revising the DPP now."
Mr Ahamad said, "After getting the approval from the ministry concerned, the Bangladesh Petroleum Corporation (BPC) will take steps to invite bids for the second unit of the ERL."
Project director Mostafizur Rahman said, "We got the engineering design and layout plan submitted to the ERL authority by French firm Technip." "We've finalised the plan and prepared the DPP for the Planning Commission, which has given some suggestions. We'll finalise the DPP. After its approval, we'll invite tenders for construction."
ERL officials said a total of 30 acres of land near the ERL were acquired. So, building work will begin by 2022.
The DPP was amended several times. The ministry has not approved the final proposal yet.
Meanwhile, the estimated cost of the project has spiked to an estimated Tk 200 billion (20,000 crore) from Tk 130 billion (13,000 crore).
Sources said the process of the second unit of the ERL, the country's lone oil refinery, which began in July 2018, is still continuing.
The second unit is expected to have a capacity of refining 3.0-million tonnes of crude oil annually.
The BPC is negotiating with Chinese state-owned firm Wuhan Engineering Company Ltd to implement the project.
Sources said the ERL's current crude-processing capacity is 1.5 million tonnes per year. In contrast, the current demand for petroleum products stands at nearly 6.5 million tonnes.
To ensure energy security of the country, the government has initiated the construction of the unit-02 of the refinery.
On implementation of the project, the ERL's overall capacity will increase to 4.5 million tonnes per year and it will achieve the much-needed equilibrium between demand and supply of petroleum products.
It will also ensure the production of eco-friendly motor gasoline and diesel oil.
