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The Bangladesh government has approved in principle the import of 1.4 million metric tonnes of crude oil from Saudi Arabia and Abu Dhabi for 2027 to meet the requirements of the country’s state-owned Eastern Refinery.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs held at the Bangladesh Secretariat on Wednesday, with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.
Under the government-to-government arrangement, Bangladesh Petroleum Corporation (BPC) will procure the crude directly from Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) through the direct procurement method.
The crude will be processed at Eastern Refinery PLC (ERL) in Chattogram.
The refinery is designed to process around 1.5 million tonnes of crude oil annually and mainly handles Arabian Light crude from Saudi Arabia and Murban crude from the UAE.
Officials said these two grades are particularly suitable and cost-effective for the existing refinery because of its ageing facilities.
They also said alternative suppliers cannot guarantee the required grades in line with Bangladesh’s needs.
The proposed imports will be financed through loans from the International Islamic Trade Finance Corporation (ITFC), according to the proposal approved by the committee.
The government also approved in principle a proposal to import refined petroleum products under government-to-government arrangements throughout 2027.
In addition, the bidding period for international tenders for refined fuel imports during January-June 2027 was reduced from 42 days to 21 days.
The move is intended to enable BPC to complete fuel procurement more quickly when required.
Bangladesh imports around 13-15 lakh tonnes of crude oil annually from Saudi Arabia and the UAE for refining at Eastern Refinery.
The refinery produces diesel, petrol, octane, furnace oil, kerosene, jet fuel, naphtha, bitumen and LPG, among other petroleum products.
