After weeks of uncertainty, a vessel carrying 1 lakh tonnes of crude oil arrived at Chattogram Port on Wednesday, paving the way for the resumption of full operations at the country’s lone state-owned refinery, Eastern Refinery Limited (ERL).
The vessel, MT Nyneamia, berthed at the port in the afternoon.
Managing Director of Eastern Refinery, Md. Sharif Hasnat, said , "The vessel arrived at the port this noon. Following the unloading, we will begin the refining process and restore full production capacity."
Officials at Eastern Refinery PLC (ERL) said once the unloading process is completed, the refinery is expected to resume full-scale production by May 8 or 9.
Operations at the refinery had been severely hampered throughout March and April as geopolitical tensions in the Middle East disrupted shipping schedules.
Due to the failure of scheduled vessels to arrive, the refinery’s reserves depleted rapidly, forcing authorities to slow down and eventually halt crude oil refining altogether.
According to Bangladesh Petroleum Corporation (BPC) officials, the shipment was originally supposed to depart from Saudi Arabia's Ras Tanura port.
However, due to conflict-related risks, the vessel instead departed from the Yanbu port on April 24.
This alternative route and the current market volatility have nearly doubled the import costs.
The shipment is valued at approximately US$100.84 million, with a price of $126.28 per barrel, while logistical changes have resulted in an additional cost of around Tk 607 crore.
The resumption of the refinery is critical for the domestic market, as ERL typically fulfills about 20 percent of the country's total fuel demand by processing crude oil into diesel, petrol, and other essential fuels.
The remaining 80 percent of Bangladesh’s demand is met through the direct import of refined petroleum.