United News of Bangladesh

Türkiye has expressed a keen interest in bolstering energy ties with Bangladesh by offering efficient and cost-effective power solutions, including cheaper Floating Storage and Regasification Units (FSRUs), Liquefied Natural Gas (LNG), and Heavy Fuel Oil (HFO). The offer was extended when Turkish Ambassador to Bangladesh Ramis Şen paid a courtesy call on Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood at his Secretariat office on Thursday. During the meeting, both sides exchanged views on deepening bilateral relations between Bangladesh and Türkiye, focusing heavily on expanding technical and commercial cooperation in the power and energy sector. Minister Iqbal Hassan Mahmood emphasized the urgent need for affordable and sustainable energy inputs to help operationalize Bangladesh’s idle power plants and enhance overall national energy security. Ambassador Ramis Şen was accompanied by Bilal Belyurt, Commercial Counsellor of the Turkish Embassy in Dhaka, alongside a delegation from Turkish energy firm Karpowership, including Jad El Sebaaly, Asli Kilic, and Emma Wahlberg. The Turkish delegation expressed its readiness to present detailed proposals to ministry officials at the earliest opportunity to support Bangladesh’s energy transition efficiently. Welcoming the initiative, the Minister agreed to hold comprehensive follow-up discussions to examine the technical proposals and identify specific areas of mutual cooperation. Reaffirming Bangladesh's commitment to expanding bilateral energy partnerships, he assured the delegation of continued dialogue. Ambassador Şen reiterated Türkiye's strong commitment to strengthening multi-sectoral ties with Bangladesh, particularly within the strategic energy landscape. Md. Ziaul Huq, Secretary of the Energy and Mineral Resources Division, along with other senior officials of the ministry, was present during the meeting.

Prime Minister Tarique Rahman on Saturday called for deeper regional cooperation in trade, energy, technology, climate and maritime affairs to turn the Bay of Bengal into a region of shared prosperity. “Let the Bay of Bengal become a region where nations grow together, embrace mutual and reciprocal benefits, and citizens expand meaningful cooperation,” he said while inaugurating the fifth Bay of Bengal Conversation 2026 at the Pan Pacific Sonargaon Hotel. The Prime Minister said Bangladesh’s strategic location, ports, waterways and coastal economy offered significant opportunities to connect the country with the wider world through shipping, fisheries, tourism, energy and regional supply chains. “Regionally, our shared geography should become a shared prosperity,” he said, stressing the need for deeper bilateral and multilateral engagement. Tarique said Bangladesh could expand cooperation with regional and global partners in trade, energy, education, technology, climate and maritime affairs, while opening new markets and creating more opportunities for young people. “We can build stronger cooperation based on equality, fairness and justice. Geography has brought us together; and we are confident that people-to-people ties can take us further,” he said. The Prime Minister said Bangladesh believes in dialogue, partnership and mutual respect and would protect its national interests and sovereignty while working positively with all regional and global partners. “Because peace and harmony are the foundation of shared prosperity and development,” he said.  

The Kingdom of Saudi Arabia (KSA) has expressed strong interest in broadening its engagement with Bangladesh beyond the traditional manpower sector, with investment opportunities in fisheries, food, energy, renewable energy, information technology and artificial intelligence. "They (KSA) have repeatedly said the same thing - They do not want to be in just one sector; they want to work with Bangladesh in many sectors,'" State Minister for Foreign Affairs Shama Obaed Islam told reporters at the Ministry of Foreign Affairs, referring to the visiting Saudi delegation's message. Earlier, a high-level meeting was held between the two sides at State Guest House Padma. Foreign Minister Dr Khalilur Rahman, Home Minister Salahuddin Ahmed, State Minister for Foreign Affairs Shama Obaed Islam, Prime Minister’s Foreign Affairs Adviser Humaiun Kobir, among others, were present at the meeting with the Saudi delegation led by Vice Minister for Foreign Affairs of the Kingdom of Saudi Arabia Eng. Waleed Elkhereji. Two deputy Saudi ministers accompanied the Saudi delegation. Shama Obaed said the Saudi side conveyed its confidence in Bangladesh's government following the country's democratic election and reaffirmed its commitment to deepening ties. She said the discussions were "very successful and fruitful," with both sides focusing on expanding economic cooperation. "The Saudi government is interested in investing in Bangladesh by utilising the expertise they have in various sectors like fisheries, food, energy and renewable energy, solar energy, information technology (IT) and artificial intelligence," Shama Obaed said. She also said Saudi Arabia is interested in recruiting more skilled workers from Bangladesh, describing the issue as another important area of discussion. "We thanked them that due to the full cooperation of the Saudi government, we were able to bring back our brothers who died there," she said, recalling that three Bangladeshi nationals were killed during the recent conflict in the region. The Saudi delegation paid tribute to them. The Saudi Crown Prince has already invited Prime Minister Tarique Rahman. Bangladesh has also invited their Crown Prince to visit Bangladesh. Shama Obaed expressed hope that a joint Bangladesh-Saudi investment meeting would be held soon, with participation from the Bangladesh Investment Development Authority (BIDA) and other stakeholders. She also announced that political consultations and a Joint Working Group meeting between the two countries are expected to take place in Bangladesh later this year. "This communication and exchange will continue," she said. Describing the visit as highly productive, Shama Obaed said Saudi Arabia expressed confidence that bilateral relations would continue to grow stronger. "This visit was very fruitful and, in the coming days, they have also expressed their strong belief that Saudi-Bangladesh relations will be further improved under the leadership of the Prime Minister," she said. Responding to a question about a possible visit by the Prime Minister to Saudi Arabia, Shama Obaed said the visit will definitely take place at a suitable time based on discussions between the two countries. Asked whether issues related to Rohingya passport documentation in Saudi Arabia or the illegal stay of some Bangladeshi workers were discussed, she said those matters did not feature prominently in the talks. "Look, we have the same problems related to passports in all countries," she said. "Our Bangladesh missions in Jeddah and Riyadh are already working to resolve those problems by establishing contact with Saudi Arabia," she added. The Saudi vice minister arrived in Dhaka on Monday night on a two-day visit. Foreign Affairs Adviser to the Prime Minister Humaiun Kobir received him at Hazrat Shahjalal International Airport. He is scheduled to leave Bangladesh on Tuesday. Saudi Ambassador to Bangladesh Dr. Abdullah Zafer H. bin Abiyah recently said they expect greater emphasis on strategic investments, industrial partnerships, and technology transfer, noting that the next five years could represent a "transformative phase" in Bangladesh-Saudi economic relations. "Bangladesh offers one of the most dynamic investment destinations in South Asia, with a market of more than 170 million people and a strategic location connecting South and Southeast Asia," said the ambassador in an interview with UNB. Traditionally, the partnership has been driven by manpower cooperation and energy trade. Particularly promising sectors include energy infrastructure, LNG, oil refining, healthcare services, pharmaceuticals, and food security initiatives, said Ambassador Dr. Abdullah.  

In a major step towards bolstering energy security, the government has launched initiatives to build Strategic Energy Reserves and supporting storage facilities to help safeguard fuel supplies against global market volatility and emergency disruptions while maintaining regional balance. To address volatility in global markets and ensure uninterrupted supply during emergencies, initiatives have been undertaken to develop ‘Strategic Energy Reserves’ and related storage infrastructure, which will play an important role in strengthening national energy security and maintaining regional balance,according to a budget document. According to the document, measures are being taken to establish cost-effective and sustainable infrastructure to maintain energy prices at affordable levels. To further enhance energy security, the establishment of an additional LNG terminal at Moheshkhali is under review alongside the two existing floating LNG terminals. Besides, the process of land acquisition and consultant appointment for a land-based LNG terminal at Matarbari, Moheshkhali is at its final stage.  An action plan is being formulated to supply gas from Bhola region to the national gas grid.  Installation of prepaid gas meters is being accelerated to reduce wastage, eliminate illegal connections and minimise system losses. To reduce risks associated with imported energy and ensure continuity of supply, the government  is pursuing a policy of energy source diversification.  This strategy seeks to reduce excessive dependence on the Middle East by expanding energy import cooperation with other potential regions, including Asia, Africa and Europe.  At the same time, initiatives are being undertaken to attract new investment through increased private sector participation, investment-friendly policies and the expansion of Public-Private Partnerships (PPP) in the energy sector. Thr budget document said initiatives have been undertaken to ensure maximum utilisation of the existing 601.50 kilometres of fuel transportation pipelines.  To increase petroleum refining and storage capacity, the government has adopted a phased plan to establish a new crude oil refinery with an annual refining capacity of 50 lac metric tonnes in Chattogram or another coastal industrial zone.  As part of this initiative, steps have been taken to establish the Second Eastern Refinery Limited (ERL-2) with a capacity of approximately 30 lac metric tonnes.  In addition, a Smart Fuel Distribution Monitoring System has been introduced in 2,722 fuel tank lorries to strengthen monitoring of fuel transportation.  Measures have also been undertaken to operationalise the Single Point Mooring (SPM) facility for petroleum unloading.  To ensure the optimal utilisation of the country's mineral resources, production targets of 6 lac metric tonnes of coal and 14 lac metric tonnes of stone have been set for FY2026-27. New projects have been undertaken for the development of the Barapukuria Second Phase and the Dighipara Coal Field to enhance coal extraction.  The government is also working towards the economic evaluation of valuable minerals such as zircon and monazite contained in the sands of the Jamuna and Meghna rivers, as well as the digital transformation of services provided by the Department of Explosives. The document stated that prolonged policy failures, institutional irregularities, mismanagement and import dependency in the energy sector under the fascist government have plunged the sector into a deep crisis.   During that period, excessive emphasis was placed solely on the import of Liquefied Natural Gas (LNG) and petroleum products.  No meaningful initiatives were undertaken to explore gas resources onshore or in the Bay of Bengal, nor to expand refining and storage capacities for petroleum products.  Due to recent geopolitical tensions in the Middle East, international spot prices of petroleum products (particularly diesel) and LNG have risen abnormally.  Considering the hardships faced by the general people , the government has provided substantial subsidies to the energy sector and made only limited adjustments to fuel prices.  At the same time, gas supply has been maintained and gas prices have remained unchanged. As per the budget document, the government has undertaken a range of initiatives to strengthen energy security by intensifying oil and gas exploration activities, increasing domestic production, expanding petroleum refining capacity and diversifying import sources.  It will establish a strategic fuel reserve system. The government is prioritising the exploration and production of natural gas both onshore and offshore.  The government is also giving priority to strengthening domestic capacity, the document stated. Through the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), plans have been adopted to undertake 270 km of geological surveys, 700 line-km of two-dimensional (2D) seismic surveys and 700 square kilometres of three-dimensional (3D) seismic surveys during the period from FY2025-26 to FY2027-28. BAPEX also plans to drill 69 wells and carry out workover operations on 31 wells using its own drilling rigs.  A new Bangladesh Offshore Bidding Round has been announced to facilitate oil and gas exploration in offshore areas.  In order to attract offshore exploration and production activities and ensure participation by international oil companies, the Model Production Sharing Contract (PSC) has been revised while safeguarding national interests.  Nine shallow-water blocks and fifteen deep-water blocks have been opened for international oil companies, where exploration activities will be undertaken under production-sharing agreements.  Furthermore, initiatives have been taken to procure two new exploration rigs for BAPEX to enhance national exploration capacity. Through the critical mineral exploration initiative, the Government is also placing special emphasis on offshore gas and unconventional hydrocarbon exploration beyond conventional energy resources.

Bangladesh’s primary energy imports rose from 47.7% to 62.5% in four years, exposing its vulnerability to the volatile international fossil fuel market and raising the power generation cost by 83%, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). Apart from expensive fossil fuels and depreciation of the Bangladeshi Taka (BDT) against the United States Dollar (USD), large capacity payments from low demand growth significantly influenced the rising power costs, according to ‘Fostering Bangladesh’s energy transition’, it said. Analysing data from FY2020-21to FY2024-25, the report finds that a surge in the average coal price by 290% between FY2020-21 and FY2022-23, along with an expensive oil price for a brief period and a sharp currency depreciation increased Bangladesh’s power generation cost drastically. However, despite 59.7% fall in coal prices as compared to FY2022-23, and oil prices remaining low during the time, generation cost did not reduce in FY2024-25. “The average capacity payments of approximately BDT9.5/Kilowatt hour (kWh) (USD0.077/kWh) and BDT5.9/kWh (USD0.048/kWh) paid to private oil- and coal-fired plants, respectively, in FY2024-25 raised overall generation costs,” said Shafiqul Alam, the report’s author and lead energy analyst at IEEFA. “Further, gas supply shortage increased cost—plants with load factor under 25% generated power at BDT16.85/kWh (USD0.137/kWh) while plants operating at around 75% load factor did so at a cost of BDT6/kWh (USD0.049/kWh).” In addition, declining domestic gas production means that Bangladesh needs to import expensive liquefied natural gas (LNG). The report estimates that the country could pay a subsidy of USD1.07 billion (BDT131.34 billion) on account of LNG imports from April to June 2026. This estimate is based on the import trend from April to June 2025 and the current import price of about USD20 per million British thermal units (MMBtu), excluding regasification and terminal costs. Additionally, the share of renewable energy remains just 2.3% of grid-based power generation, far below the global average of around 33.8%, limiting its ability to hedge against the volatile prices in international fossil fuel markets. Currently, however, high import duties are levied on distributed renewable energy (DRE) systems. The report estimates that a combined rooftop solar capacity of 100 megawatts (MW) will save more than 30 times the one-off import duties by reducing furnace oil imports over the lifecycle. Hence, it calls on the government to offer a duty waiver. “The solutions to Bangladesh’s persistent problems lie closer to home, such as in expanding domestic renewable energy at scale while limiting fossil fuel-based plants to contain overcapacity. Given the requirement of spinning reserve and grid balancing, the government may consider retaining part of the operational oil-fired plants in its ownership to avoid the hefty capacity payments once their contracts expire,” said Alam. To reduce its gas demand, Bangladesh could tap into the cost-competitive hydropower potential of the Bangladesh-Bhutan-India-Nepal (BBIN) framework. A combined hydropower capacity of 6,000MW from Nepal and Bhutan for the high-demand March-September period will likely help the country reduce annual gas consumption by up to 257 billion cubic feet (Bcf) post 2030. The report also seeks to draw policymakers’ attention towards the need to keep the open access cost of renewable energy projects under Corporate Power Purchase Agreements (CPPAs) at a minimum. This would enable the apparel sector and corporates to decarbonise their operations as part of their environmental, social, and governance (ESG) targets. While power utilities fear loss of revenue due to such projects under the CPPA, the analysis by IEEFA shows that electricity consumption in industries increased by 4.8% in FY2024-25. “BPDB recorded revenue shortfalls of BDT556.6 billion (USD4.53 billion) in FY2024-25. The West Asia conflict will likely add to the financial stress of other key energy sector utilities. Ultimately, the pathway to energy transition hinges on prudent policy decisions about implementing realistic targets on the ground supported by a favourable ecosystem, thereby minimising the country’s continued reliance on imported fossil fuels and high subsidies,” said Alam.    

Parliament on Sunday formed a 10-member special committee with a 30-day tenure to submit a report with recommendations for addressing the country’s energy situation stemming from the Middle East crisis. The committee, headed by Power and Energy Minister Iqbal Hassan Mahmood Tuku (as the chairman), was formed under the rule 266 of the rules of procedure after Chief Whip Nurul Islam Moni placed a proposal for the formation of the body in the House. The joint committee was constituted with five members each from the treasury bench and the opposition bench. The five members from the treasury bench are Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku, State Minister Anindya Islam Amit, and BNP MPs ABM Ashraf Uddin Nizan (Laxmipur-4), Moinul Islam Khan (Manikganj-2) and Miah Nuruddin Ahmad Apu (Shariatpur-3). The five members from the opposition bench are Jamaat lawmakers Md Saiful Alam (Dhaka-12), Md Nurul Islam (Chapainawabganj-3) and Md Abdul Baten (Dhaka-16), NCP MP Md Abul Hasnat (Cumilla-4) and Khilafat Majlis lawmaker Mohammed Abul Hasan (Sylhet-5). On April 23, Prime Minister Tarique Rahman proposed in Parliament the formation of a 10-member joint committee seeking five names from the opposition to work together on ‘rational solutions’ to the country’s ongoing energy problem. He also proposed five names from the government side for the committee. Hours later on the same day, Leader of the Opposition Shafiqur Rahman in the House proposed five MPs from his side for a 10-member joint committee.

Commerce Minister Khandakar Abdul Muktadir on Monday said Bangladesh has to purchase liquefied natural gas (LNG) at nearly double the earlier price and crude oil at sharply higher rates due to volatility in the global energy market triggered by the Middle East conflict. “Under G2G contracts, we used to buy LNG at $10 per unit, which now has to be purchased at $20. On the other hand, crude oil was priced at $50-60 per barrel, which has now crossed $110. Soon after the formation of the government, fuel prices doubled due to the Middle East war,” he told a seminar organised by the Dhaka Chamber of Commerce and Industry (DCCI) at a city hotel. The sudden outbreak of war created an unexpected havoc that no one had planned for, and managing this situation has now become a major challenge, the minister said. He also noted that fertiliser is being purchased at nearly double the price amid the volatile situation. “We require around 2.6 million tonnes of urea annually. A bulk portion has to be imported because for many years we have not been able to keep our fertiliser factories running throughout the year due to gas shortages. The gas we cannot use to run fertiliser plants has to be imported again using foreign currency. Gas that we used to buy at $456 now has to be purchased in excess of $800.” Muktadir said bearing the high cost of fuel has become “difficult” for the government. “The government’s manoeuvring capability, its financial cushion to prioritise spending has become very limited. The ability to allocate expenditures according to priorities has become extremely difficult for this government.” Highlighting the lack of fuel storage capacity in Bangladesh, he said the country will not have faced the current double cost burden if adequate reserves were available. “Bangladesh does not have proper fuel storage facilities. If we had the capacity to store LNG for two months, we would not have to buy LNG from the spot market at $20 instead of $10.” The minister also said the government plans to expand the tax net rather than increasing taxes. “To bring fiscal discipline, we need to widen the tax base. We are not increasing individual taxes; rather we are expanding the tax net. I believe the NBR and the finance ministry are working with that goal and intention.” He said the government will try its best in the upcoming budget to avoid additional pressure on people, while ensuring industries remain operational despite the energy crisis. Muktadir noted that subsidy pressure remains high in the budget. He said revenue collection as a share of GDP has remained low for a long time, while expenditure, particularly subsidies, continues to rise. Due to international price volatility in power and energy, the government has to provide large subsidies, while agricultural subsidies for fertiliser, electricity and other inputs also continue. As a result, financing development projects is becoming difficult, the minister said, adding that investment in major infrastructure projects, social safety net programmes and human resource development is being constrained. “To meet regular budget deficits, the government has to rely on domestic and foreign borrowing. This increases the debt burden and interest payments, which may create fiscal risks in the future,” he warned. Muktadir emphasised modernising the tax system and expanding the tax net, expressing hope that strengthening digital tax collection platforms will increase revenue and help manage subsidy pressures.

The prices of diesel, octane, petrol, and kerosene will remain unchanged in March, the Energy and Mineral Resources Division has said. On February 26, the division sent a letter to the chairman of Bangladesh Petroleum Corporation (BPC) instructing that all types of fuel prices be kept steady. The letter was made public on Sunday morning. Earlier, on February 1, the government reduced fuel prices by Tk 2 per litre. Diesel was lowered from Tk 102 to Tk 100 per litre, octane from Tk 122 to Tk 120, petrol from Tk 118 to Tk 116, and kerosene from Tk 114 to Tk 112. For March, prices will remain the same. Fuel prices in Bangladesh are determined monthly for consumers through an automatic pricing system which adjusts rates based on fluctuations in global oil markets. According to the revised  Automatic Fuel Pricing Guidelines,the Energy and Mineral Resources Division has decided to maintain March fuel prices unchanged.

Clearing massive outstanding dues owed to foreign energy suppliers has been the biggest achievement of the interim government in the energy sector, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan said on Tuesday, marking his last working day in office. Speaking at a press conference at Bidyut Bhaban reviewing the interim government’s performance in the power and energy sector, the adviser said the sector had been burdened with huge liabilities when the government took office. “The biggest challenge was settling the dues. Within days of taking charge, I was told that LNG imports would not be possible unless payments were cleared. Late payment fees were also crippling the energy sector. Considering everything, we decided that settling the dues would be our top priority,” he said. According to the Energy and Mineral Resources Division, Petrobangla’s outstanding dues to various international oil and gas companies had stood at Tk 9,106 crore following the fall of the Awami League government on August 5, 2024. Between then and April 2025, Petrobangla paid energy bills worth Tk 35,700 crore, bringing its outstanding liabilities down to zero. The adviser said cost optimisation was another major focus of the interim government alongside debt repayment. Through lower premiums in both spot and long-term LNG purchases, around Tk 1,500 crore was saved in the first six months, he said. Petrobangla has signed new Master Sales and Purchase Agreements (MSPAs) with 24 companies, enabling LNG imports at reduced premiums. While the average premium stood at USD 1.28 per unit between July 2023 and August 2024, it has now dropped to 38 cents. Govt recommends procuring 53.87m units of Anti-TB drugs “Although we have little control over international gas index prices, significant savings were achieved through lower purchase premiums,” Fouzul said, adding that unnecessary expenditure in gas exploration drilling was also curtailed. He said the government repealed the Speedy Supply of Power and Energy (Special Provision) Act, 2010, and conducted drilling under the Public Procurement Act and Rules (PPR), ensuring transparency and competitive pricing. According to official estimates, significant cost savings were made in drilling five gas exploration wells in Bhola under BAPEX. Earlier projected costs of Tk 1,555 crore were reduced to Tk 907 crore. However, Fouzul acknowledged that gas discovery from the drilled wells fell short of expectations. “The amount of gas discovered is insufficient compared to the depletion rate. Exploration is a time-consuming process. Even feasibility tests take more than six months, and the interim government did not have enough time to complete many initiatives.” The adviser also said no major investment could be secured in the energy sector due to uncertainty over the government’s tenure. “Potential investors repeatedly asked about the government’s term. As we could not provide a clear answer, it was not possible to finalise major investment deals.” No decisions were taken on coal-based energy projects, leaving those to the elected government, he added. Fouzul also said document-related complexities of offshore bidding processes initiated during the previous government had been resolved. Outlining recommendations for the next government, he stressed the importance of offshore bidding for oil and gas exploration in maritime areas, along with plans to establish land-based LNG terminals and a fourth Floating Storage and Regasification Unit (FSRU). To address the country’s gas crisis, the energy division has recommended drilling 100 wells by 2028, which could add an additional 900 million cubic feet per day (mmcfd) of gas to the national grid. On his final working day, the adviser said he would leave behind a written guideline for the next minister in charge. “I did not receive any roadmap when I took office. But the next person should know where to start and which direction to move in.” Senior officials of power and energy-related agencies, ministry officials, and public and private sector stakeholders were present at the press conference.

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. Read more: Endless delay pushes Barui Para Bridge cost to Tk 136cr; frustration grows 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. Read more: Irregularities deepen doubts over Khulna’s mega embankment project 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. Read more: Govt set to implement new project to digitise medical, nursing education 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. Read more: Govt approves Tk 462.99cr Karnaphuli Tunnel connectivity project