The Executive Committee of the National Economic Council (ECNEC) on Tuesday (December 23, 2025) approved a Tk 35,465 crore project to modernise and expand Eastern Refinery Limited (ERL), aiming to strengthen Bangladesh’s energy security, produce cleaner fuel and cut dependence on imported refined petroleum products.
The approval came at an ECNEC meeting held at the NEC Auditorium of the Planning Commission with Chief Adviser Professor Muhammad Yunus in the chair.
Titled “Modernisation and Expansion of Eastern Refinery Limited (ERL),” the project has been undertaken by the Energy and Mineral Resources Division and will be implemented by ERL on behalf of the Bangladesh Petroleum Corporation (BPC).
It falls under the power and energy sector and will be implemented in the Patenga area under Chattogram City Corporation in Chattogram district from December 2025 to November 2030.
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Of the total estimated cost, Tk 21,277.59 crore will be provided as a government loan, while Tk 14,187.56 crore will come from ERL’s own resources.
According to official documents, the key objectives of the project are to further reinforce national energy security, produce cleaner and more environment-friendly petroleum products and reduce the country’s heavy reliance on imported finished petroleum products.
Under the project, a wide range of activities will be carried out, including site preparation, detailed engineering, procurement and construction involving both civil and mechanical works.
A total of 20 processing units and 18 utility and off-site units will be installed as part of the expansion.
Besides, electrical line connections will be taken from the Power Development Board (PDB), gas line connections from Karnaphuli Gas Distribution Company Limited (KGDCL), drainage infrastructure will be constructed, and computers, office equipment and other ancillary items will be procured.
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Eastern Refinery Limited, established in 1968, currently has a crude oil processing capacity of 1.5 million metric tonnes per year.
At present, ERL meets only about 20 per cent of the country’s total demand for petroleum products, with the remaining requirement being fulfilled through imports.
This results in a substantial outflow of foreign currency for importing refined fuels.
Officials said the introduction of Euro-5 fuel standards has made petroleum product specifications much more stringent.
The proposed modernised refinery will produce Euro-5 standard environment-friendly gasoline and diesel, while upgrading existing diesel, motor spirit and octane produced at ERL to Euro-5 standards.
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In the meantime, BPC has already implemented the “Installation of Single Point Mooring (SPM) with Double Pipeline” project, which will enable transportation of up to 4.5 million metric tonnes of crude oil annually.
This development has created favourable conditions for handling larger volumes of crude oil required for the expanded refinery.
The Planning Commission, in its recommendation, said that once implemented, the project would enable the country to refine 3 million metric tonnes of crude oil annually and meet around 45 to 50 per cent of national demand for petroleum products.
This is expected to enhance fuel storage capacity, save a significant amount of foreign exchange and contribute to ensuring long-term energy security for the country.
Under a Processing Agreement with Bangladesh Petroleum Corporation (BPC), ERL processes crude oil imported by BPC and delivers the finished petroleum products to the other subsidiaries of BPC for marketing and distribution.
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