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After more than two and a half months without crude oil supplies – owing to ongoing tensions in the Middle East – a tanker carrying 100,000 tonnes of crude has finally arrived in the country, clearing the way for Eastern Refinery Limited (ERL) to resume full-scale operations.
ERL’s Deputy General Manager for Planning and Shipping Md Mostafizur Rahman confirmed to the Daily Sun that the vessel “MT Ninemia”, laden with 100,000 tonnes of crude imported from Saudi Arabia, arrived at Kutubdia anchorage at Chattogram Port on Tuesday morning.
“Preparations for lightering operations from the vessel have already been made. Once the cargo is discharged, refining activities at ERL will resume after approximately 24 days, on Thursday,” he said.
ERL, the country’s sole state-owned refinery operating under Bangladesh Petroleum Corporation (BPC), is entirely dependent on imported crude oil and had received no raw materials since 18 February as a direct consequence of the Middle East crisis.
Crude purchased from Saudi Arabia and the United Arab Emirates under government-to-government agreements is transported by Bangladesh Shipping Corporation (BSC).
However, the protracted conflict in the region disrupted the supply chain, leaving chartered vessels exposed to considerable risk.
A tanker named “Nordic Pollux”, carrying 100,000 tonnes of Saudi crude, has reportedly been stranded near the Strait of Hormuz since 5 April.
A separate shipment of 100,000 tonnes from Jebel Dhanna Port in the UAE was subsequently cancelled after the vessel’s owner declined to proceed owing to security concerns.
As a result, ERL’s main Crude Distillation Unit (CDU) has remained shut since 12 April due to the shortage of raw material.
According to the global ship-tracking platform Marine Traffic, the “MT Ninemia” – carrying crude from Yanbu in Saudi Arabia – was off the St Martin’s coast in the Bay of Bengal on Monday night and was expected to reach Kutubdia anchorage at around 6am on Tuesday.
Sources within BPC have indicated that two further crude oil shipments, totalling an additional 200,000 tonnes, are expected to arrive later this month, allaying fears of any prolonged shortage at the refinery.
BSC Managing Director Commodore Mahmudul Malek said a vessel carrying another 100,000 tonnes of Murban crude from the UAE is expected to depart for Bangladesh between 11 and 12 May.
“The cargo will be loaded from Fujairah Port, which means the vessel will not need to pass through the Strait of Hormuz, thereby reducing the security risk considerably,” he said.
Commodore Malek also confirmed that a further 100,000 tonnes of crude from Yanbu, Saudi Arabia, was in the pipeline.
“We are currently in discussions with suppliers. Once the laycan schedule is finalised, we will despatch the tanker,” he added.
According to BPC data, Bangladesh currently consumes in excess of seven million tonnes of fuel oil annually, of which approximately 92% is imported by the state-run corporation, with the remaining 8% derived from domestic sources.
Of the imported fuel, roughly 1.5 million tonnes of crude oil is refined annually at ERL. Recommended Stories
The refinery is capable of processing two grades of crude: Arabian Light from Saudi Arabia and Murban crude from the UAE.