CVO Petrochemical Refinery suspends production due to condensate crisis | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
May 28, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, MAY 28, 2025
CVO Petrochemical Refinery suspends production due to condensate crisis

Energy

TBS Report
06 July, 2020, 09:40 am
Last modified: 06 July, 2020, 09:46 am

Related News

  • How CVO Petrochemical boosts business
  • Bangladesh reports 36 Covid-19 cases in 24hrs
  • Bangladesh reports one more Covid-19 death, 49 cases in 24hrs
  • Bangladesh sees one more Covid-19 death since 27 June, 66 cases in 24hrs
  • Bangladesh reports 86 Covid-19 cases in 24 hours

CVO Petrochemical Refinery suspends production due to condensate crisis

An official of Petrobangla said the government decided this because of the poor production of natural gas due to the novel coronavirus pandemic

TBS Report
06 July, 2020, 09:40 am
Last modified: 06 July, 2020, 09:46 am

CVO Petrochemical Refinery has suspended production for three months after Petrobangla suspended the supply of condensate – the raw material used to produce fuel products such as petrol, diesel, kerosene and octane – to the refinery.

Condensate – a by-product of gas – is mined together with natural gas in the gas fields. All private refineries are dependent on Petrobangla – the government-owned oil and gas corporation – for this sole raw material.

Complying with an order of the Energy and Mineral Resources Division, Petrobangla has suspended the supply of condensate to all private refineries for three months – from July to September.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"The government took the decision because of the poor production of natural gas due to the novel coronavirus pandemic," said an official of Petrobangla. 

An official of the refinery said now the company will not be able to continue production for the three-month period as the condensate is the sole raw material used in its condensate fractional plant supplied by Petrobangla.

However, Petromax Refinery, which produces fuel by using condensate, said it did not receive a letter from Petrobangla regarding a suspension on condensate supply.

Refinery is a subsidiary of Shahjibazar Power Company Limited – which is a listed company on the share market.

Yeasin Ahmed, company secretary of Shahjibazar Power, told The Business Standard, "We have not received a letter from Petrobangla on this issue. Our production is ongoing amid the novel coronavirus pandemic."

CVO Petrochemical Refinery

Of the refineries, only CVO Petrochemical Refinery is listed on the share market. In 2014, the company shifted its business from producing edible oil to refining condensate.

It entered into an agreement with the Jalalabad Gas Field to buy condensate. The agreement will expire on December 31, 2020.

The company is engaged in the production and sale of fuel like motor spirit, high speed diesel and mineral turpentine from natural gas condensate. The installed production capacity of the company is 150 tonnes per day.

In the first three quarters of the 2019-20 financial year, the company incurred a loss of Tk0.37 per share. During that period, its revenue dropped by four percent to Tk52.92 crore.

The company official said due to lack of condensate supply, the company could be able to utilise only 20 percent of its total production capacity. The company wrote the authorities several times in this regard but no solution has yet been found.

Petromax Refinery also losing business

Petromax started commercial operations in 2013. Octane is its main product, but the company also produces small quantities of diesel, petroleum and kerosene. It buys condensate from the Rupantarito Prakritik Gas Company.

Shahjibazar Power, a sister concern of Youth Group, holds a 90 percent share of Petromax Refinery with an investment of Tk90 crore.

In the fiscal year 2013-14, Petromax earned Tk362.35 crore and made a net profit of Tk20.59 crore. The following year, fiscal year 2014-15, the company earned a maximum of Tk764.26 crore and made a net profit of Tk72.88 crore. Since then, its business has declined.

In the first three quarters of the 2019-20 financial year, revenue of the company fell by 12 percent to Tk379.93 crore. Further, it posted a loss of Tk5.12 crore from its refinery business.

Bangladesh

CVO Petrochemical Refinery / Economic Impact of Coronavirus / Coronavirus impact / Coronavirus Pandemic / Covid-19 effect / Covid -19 in Bangladesh / Covid-19 crisis

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26
    Inflation, exchange rate shocks to intensify fiscal pressure in FY26
  • Leaders and activists of BNP gather at Nayapaltan ahead of the rally of three BNP affiliated organisations on Wednesday, 28 May 2025. Photo: TBS
    BNP, Jamaat rallies: Traffic likely to clog Dhaka roads, including Shahbagh, Nayapaltan, Kakrail
  • Chief Adviser Professor Muhammad Yunus departed for Japan at 2:10am on Wednesday. Photo: CA Press Wing
    CA Yunus in Tokyo to join Nikkei Forum, hold bilateral talks

MOST VIEWED

  • Selim RF Hussain. Sketch: TBS
    BRAC Bank MD Selim RF Hussain resigns
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Depositors need not worry as govt will take over banks before merger: BB governor
  • Graphics: TBS
    Suspicious banking activities surge by 56% since July: Cenbank
  • Photo: Collected
    DU student assaulted for protesting eve-teasing at Chadni Chowk
  • Illustration: TBS
    Bangladesh sees highest-ever per capita income of $2,820 in FY25, BBS provisional data shows
  • Officials protest inside the Secretariat on Tuesday, 27 May 2025, over a government ordinance amending the Public Service Act, 2018. Photo: Rajib Dhar
    Protest at Secretariat suspended as govt assures decision on ordinance tomorrow

Related News

  • How CVO Petrochemical boosts business
  • Bangladesh reports 36 Covid-19 cases in 24hrs
  • Bangladesh reports one more Covid-19 death, 49 cases in 24hrs
  • Bangladesh sees one more Covid-19 death since 27 June, 66 cases in 24hrs
  • Bangladesh reports 86 Covid-19 cases in 24 hours

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

1d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

2d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

2d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

2d | Wheels

More Videos from TBS

What did Jamaat leader ATM Azhar say after being released from prison?

What did Jamaat leader ATM Azhar say after being released from prison?

45m | TBS Today
How can we protect Dhaka’s rivers and canals from plastic waste?

How can we protect Dhaka’s rivers and canals from plastic waste?

2h | TBS Programs
Jamaat leader ATM Azhar released from prison after 13 years

Jamaat leader ATM Azhar released from prison after 13 years

3h | TBS Today
Trump delays 50% tariffs on EU goods

Trump delays 50% tariffs on EU goods

14h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net