Bangladesh Petroleum Corp (BPC) has issued its first tender to buy fuel oil as part of a move away from direct-term deals with fuel products suppliers in a bid to achieve cheaper rates.
BPC is seeking 160,000 tonnes of 180-centistoke high sulphur fuel oil, a tender document showed. The tender closes on 20 July and is valid till 2 Oct, reports Reuters.In February, BPC issued its first tender to buy oil products in 15 years when it sought more than 11 million barrels of diesel and jet fuel, winning lower rates than its term deals.
The fuel oil tender was the first since BPC started importing the oil product through term deals with oil companies in late 2010, a senior BPC official said.
“Achieving more competitive rates is a main reason for switching to tenders,” the official said. The tender was for delivery between August and December.
A shortfall in supplies of natural gas has forced Bangladesh to burn oil, a more costly option, to generate electricity. BPC’s 33,000-barrels-per-day refinery in Chittagong meets about 30 percent of the country’s fuel oil needs for oil-fired power plants.
Until early 2010, Bangladesh was an occasional seller in the Asian fuel oil market, offering small volumes of about 30,000 tonnes irregularly.