In 2025, 32 million metric tons of fuel oil is planned to be imported

The government has planned to import about 3.2 lakh tonnes of refined and crude fuel oil for the period from January to December next year (2025) and one cargo of liquefied natural gas (LNG) for November this year.

For this purpose, the Advisory Committee on Economic Affairs has given policy approval to the proposal of the Department of Energy and Mineral Resources. Thursday (October 24) finance and trade adviser. This approval was given in the committee meeting held under the chairmanship of Salehuddin Ahmed.

According to the sources of the meeting, in-principle approval has been given to the proposal of direct purchase of refined fuel oil for the year 2025 (January to December). This fuel will be purchased from its own funds under the Department of Energy and Mineral Resources.

Bangladesh Petroleum Corporation (BPC) has been importing 50 percent of the total demand of fuel oil since 2016 on a G-to-G basis and 50 percent through open international tenders as per the decision of the Cabinet Committee on Public Procurement.

Considering sales trend and adequate stock, total imports on G-to-G basis for 2025 are Gas Oil 19.10 lakh MT (10%+), Jet A-1= 3.65 lakh MT (10%+), Mogas 1.25 Lakh MT (10%+), Furnace Oil 4.5 Lakh MT (10%+) and Marine Fuel 45 Lakh MT (10%+) Total Refined Fuel Oil 28 Lakh 95 Lakh MT.

The Committee has approved the proposal of import through direct purchase method as per Section 68(1) of PPA 2006 and Rule 76(2) of PPR 2008 for State emergency and public interest.

In the meeting, the committee approved the principle of import of crude oil for 2025 through direct purchase method. Bangladesh Petroleum Corporation (BPC) imports Arabian Light Crude (ALC) from Saudi Aramco and crude oil from ADNOC, Abu Dhabi under long-term contracts on G-to-G basis for processing at the Eastern Refinery.

These two crude oils are more suitable as raw material for processing as per ERL feed design and there is no scope of import from any other company in the tender process as per the state emergency requirement and public interest as per Section 68(1) of PPA 2006 and Rule 76(2) of PPR 2008, 2025 The committee approved the proposal for in-principle purchase of 1.3 million metric tons of crude oil from Saudi Aramco, Saudi Arabia and ADNOC, Abu Dhabi through direct purchase method.

7 lakh metric tons of crude oil will be imported from Saudi Arabia and 6 lakh metric tons from Abu Dhabi.

In the meeting, the committee gave in-principle approval for import of one cargo (30th for the period 10-11 November 2024) of LNG through direct purchase method from the spot market to meet the urgent demand of gas. When the requotation was called from the spot market for the period 10-11 November 2024 (30th cargo), only two firms submitted proposals within the stipulated time.

On the other hand, in Rule 73(7) of PPR-2008, if at least three acceptable quotations are not received, there is a provision to cancel the quotations and apply the direct purchase method. Proposal to purchase one cargo (30th for the period 10-11 November 2024) of LNG from the spot market for uninterrupted supply of gas to various sectors including electricity, fertilizer, industry, etc. Pursuant to Rule 76(2) of PPR-2008, policy of purchase through direct purchase method Sources said the committee approved the proposal for approval.

MAS/MKR/JIM