LNG price spiral: Bangladesh to bank on higher imports of petroleum

Running power plants with oil seen cheaper


FE REPORT | Published: April 28, 2022 09:43:28


Reuters file photo

Bangladesh will import up to 1.65 million tonnes of refined petroleum products during July-December 2022, some 34-percent higher than that of the 2021 second half, as LNG gets costlier.

Officials say the state-run Bangladesh Petroleum Corporation (BPC) has already floated tender to purchase 11,30,000 tonnes-11,90,000 tonnes of 500ppm gasoil (diesel), 160,000 tonnes of jet fuel, 75,000 tonnes-1,25,000 tonnes of 180cst high-sulfur fuel oil (HSFO), 125,000 tonnes-150,000 tonnes of octane and 30,000 tonnes of marine fuel with 5.0-percent sulfur.

"The BPC will be importing more refined petroleum products during H2 2022 compared to H2 2021 as consumption is likely to be higher due to the high price of alternative fuel LNG (liquefied natural gas)," says a senior BPC official.

Bangladesh expects that running oil-fired power plants to be cost-effective compared with re-gasified LNG fuelling.

The BPC will import refined petroleum fuels in five packages based on their quantities and types.

During H2 2021, the BPC imported around 1.04 million tonnes of 0.005% sulfur gasoil, Jet A-1 fuel, 180 CST high-sulfur fuel oil, and 95 RON gasoline combined due to lower-than-expected consumption on the back of the coronavirus pandemic, the BPC official said.

The BPC imports around half of its total required refined oil products through tenders and the remaining half through negotiations with suppliers.

It imports around 1.40 million tonnes of crude oil annually for its wholly- owned maiden Eastern Refinery Ltd.

Separately, Bangladesh's private sector will be importing around 1.60 million tonnes of 180 CST HSFO during H2 2022.

Azizjst@yahoo.com

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