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BPC now importing cleaner diesel for better environment

It'll also bring cleaner marine fuel this month


| Updated: July 25, 2020 10:30:39


BPC now importing cleaner diesel for better environment

Bangladesh has started importing cleaner 0.005 per cent sulfur gasoil, or diesel, from this month instead of the previous 0.05 per cent sulfur gasoil to ensure better environment.

The state-run Bangladesh Petroleum Corporation (BPC) this week imported at least one cargo of cleaner diesel from Unipec Singapore Pte Ltd, BPC's director for operations and planning Syed Mahdi Hasan told the FE on Wednesday.

He said the cargo has the capacity to carry 30,000 tonnes of diesel.

Similarly, BPC will initiate importing lower sulfur marine fuel, or 180 CST high sulfur fuel oil with 0.5 per cent sulfur, instead of the previous 3.5 per cent from this month, Mr Hasan also said.

BPC has moved to import cleaner petroleum products in line with a decision of the Cabinet Committee on Economic Affairs.

The Ministry of Environment and Forests has long been instructing the state corporation to import cleaner gasoil and marine fuel as per the International Maritime Organisation's guideline for safer environment, the official further said.

BPC will import half of its total marine fuel requirement through tender, and the remaining half through negotiation with suppliers, he added.

The agency is likely to import around 4.5 million tonnes of 0.005 per cent sulfur gasoil annually to meet domestic demand.

Its marine fuel requirement with 0.5 per cent sulfur is around 175,000 tonnes annually.

BPC usually imports refined petroleum products under term deals, following negotiations from Unipec Singapore Pte Ltd of China, BSP Zapin of Indonesia, Emirates National Oil Company (ENOC), PETCO Trading Labuan Company Ltd (PTLCL) - the global trading arm for petroleum products of Petronas Malaysia, Petrochina (Singapore) Pte Ltd, PTT International Trading Pte of Thailand, and Bharat Petroleum Corporation Ltd (BPCL).

Unipec Singapore and Vitol Asia have been the major refined oil suppliers to BPC over the past several years under tendering system.

BPC last changed sulfur content of gasoil for import in January 2015, when it started importing 0.05 per cent sulfur gasoil instead of 0.20-0.25 per cent sulfur gasoil.

The entity imported refined petroleum products only through long term deals following negotiations.

All suppliers, excepting Kuwait Petroleum Corporation (KPC), then started supplying 0.05 per cent sulfur gasoil to BPC.

KPC, however, started supplying 0.05 per cent sulfur gasoil from January 2016.

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