No Result
View All Result
INDUSTRY INSIDER
About Us
  • Industry
  • Business
  • Tech
  • Bangladesh
  • World
  • Feature
  • R&D
  • Opinion
  • Magazine
  • More
Sunday, May 18, 2025
  • Industry
  • Business
  • Tech
  • Bangladesh
  • World
  • Feature
  • R&D
  • Opinion
  • Magazine
  • More
No Result
View All Result
INDUSTRY INSIDER
No Result
View All Result
Home Industry

Private petrochemical plants seek to resume operations after three-year hiatus

Private petrochemical plants seek to resume operations after three-year hiatus
by Insider Desk
May 17, 2023

Privately-owned petrochemical and fractionation plants in Bangladesh are preparing to resume commercial operations after a three-year hiatus, as the government plans to import diesel-rich condensate to kickstart their activities.

The state-run Bangladesh Petroleum Corporation (BPC) has chosen Indonesian energy company PT Bumi Siak Pusako (BSP) through an international tender to supply approximately 30,000 tonnes of diesel-rich condensate.

The BPC has submitted a proposal for condensate purchase to the Cabinet Committee on Government Purchase for approval.

PT Bumi Siak Pusako has offered to supply the condensate at the international market price with an additional $19.5 per tonne premium. Once imported, the BPC will provide the fuel to various petrochemical and fractionation plants for refining and mainly producing diesel.

These plants will also be able to produce lighter kerosene, specifically treated for use as a thinner solvent in paints and varnishes. Following successful trial production, the plants will independently import condensate to produce diesel and other necessary byproducts.

The private plants have incurred losses during the non-operation period and continue to pay interest on bank loans.

The government plans to purchase diesel from these plants at international market prices. The Energy Division recently issued a gazette notification introducing an ‘automated pricing formula’ for internal pricing of various petroleum products, including diesel, based on their monthly price movements in the international market.

According to the pricing formula, the BPC will buy diesel at 1.0% below the international price. The byproducts will be sold to different paint industries and clients.

Private refineries, including CVO Petrochemical Refinery Ltd., are gearing up to produce diesel following the government’s latest decision.

Several privately-owned petrochemical and refinery plants in Bangladesh have been closed since June 2020 due to a lack of condensate supply.

Allegations were made against some private sector refiners for selling condensate without refining it to petrol, prompting a halt in their operations.

The closure of these plants has resulted in bank loans of around Tk 20 billion remaining unpaid and approximately 5,000 employees losing their jobs.

The country’s annual diesel requirement stands at approximately 6.0 million tonnes. The BPC imports the majority of diesel as refined products while producing a small portion at its subsidiary, Eastern Refinery Ltd (ERL).

Tags: BangladeshFeaturedPetrochemicalPetroleum
Previous Post

2nd denim innovation night to highlight the country’s innovation capabilities

Next Post

Q1 Denim exports to the EU and US experience a decline

Related Posts

Behind dairy’s unrealized potential 

by Md Asaduz Zaman
| May 11, 2025

Why Bangladesh needs stricter pharmaceutical regulations

by Sharmin Jahan Juha
| May 11, 2025

Rethinking hi-tech park strategies, focusing on FDI is key

by Shafiqul Islam
| March 23, 2025

Road to data-driven industry: Establishing operational data flow

by Giasuddin M Tauseef
| April 8, 2025

Mapping out Bangladesh’s path to global semiconductor competitiveness

by AKM Uday Hasan Bhuiyan
| February 6, 2025

Local processed foods’ path to global food shelves

by Mashfiq Mizan
| January 16, 2025

Next Post
Q1 Denim exports to the EU and US experience a decline

Q1 Denim exports to the EU and US experience a decline

You May Also Like


Bangladesh secures $290m World Bank loan to combat air pollution
News

Bangladesh secures $290m World Bank loan to combat air pollution

by Insider Desk
May 17, 2025
0

Bangladesh has concluded negotiations with the World Bank for a $290 million loan to tackle severe air pollution through a...

Read more
Nagad Digital Bank becomes first licensed digital bank in Bangladesh

Bangladesh Postal Department takes charge of Nagad

May 17, 2025
Bangladesh eases payment commitment regulations for banks

Surplus banks shun call money market

May 17, 2025
Interest payments to surge as Government faces mounting debt burden

Interest payments to surge as Government faces mounting debt burden

May 17, 2025
Internet prices to drop by 20% from July

Internet prices to drop by 20% from July

May 17, 2025
Home
Industry
Business
Tech
Bangladesh
World
Feature
R&D
Videos
Magazine
About Us Subscribe
Terms & Conditions
Privacy Policy
Refund Policy
Cancellation Policy
Industry Insider is published by Tareq Ahmed Robin, Sayem Sharif, Md Mahfuz Ul Islam and Mohammad Saiful Islam. It is a quarterly magazine, comes from House B-114, Level – 03, Road – 07, DOHS, Mohakhali, Dhaka – 1206
Reach Out: [email protected]
© 2023 – All rights reserved with Industry Insider | Developed By YSI Bangla Limited  Follow us on our socials:
© 2023 – All rights reserved with Industry Insider | Developed By   Follow us on our socials:

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • All News
  • Industry
  • Business
  • Tech
  • Bangladesh
  • World
  • Feature
  • R&D
  • Opinion
  • More
  • About Us
  • E-Magazine
  • Videos
  • Subscribe