Govt to boost fuel capacity, fast-track ERL unit-2 amid supply concerns: BPC chairman

Bangladesh Petroleum Corporation (BPC) is planning a major expansion of its fuel handling and storage capacity as part of efforts to strengthen energy security and address supply risks, its chairman Mohammad Rezanur Rahman said today (6 May).

He made the remarks after visiting LP Gas Limited and Eastern Refinery Limited in Chattogram.

Rezanur said the state-run organisation plans to significantly expand its existing infrastructure, including a target to increase capacity threefold at key facilities.

"We have plans to take the organisation much further. One of the key targets is to increase existing capacity threefold," he said.

He also said building strategic reserves has become a priority. BPC is working to maintain fuel stock equivalent to at least three months of consumption.

"This is now a priority. We are exploring multiple approaches, including using unused storage tanks and building new ones," he added.

As part of the plan, BPC has instructed LP Gas Limited to expand its plant capacity in line with future supply growth, particularly in anticipation of output from the second unit of Eastern Refinery.

The government has made progress in fast-tracking the long-delayed ERL Unit-2 project, including steps to appoint consultants. Once operational, the unit is expected to increase LPG output, requiring expansion in bottling and distribution capacity to avoid supply bottlenecks.

"We have asked them to align their capacity so that LPG production from ERL does not face delays in bottling or marketing," the BPC chairman said.

BPC is also working to increase storage capacity, with plans to double or even triple existing tank capacity through new installations and use of unused tanks at government and private facilities.

The corporation has taken time-bound initiatives to conduct feasibility studies for new LPG plants in Mongla and Elenga. Officials have been instructed to complete studies, prepare development project proposals and tender documents within a fixed deadline.

Another initiative is the development of a land-based LPG terminal at Matarbari, which is being planned in an integrated way with LNG infrastructure.

On crude oil imports, Rahman said efforts are underway to diversify sourcing beyond the Middle East to ensure supply stability.

Meanwhile, the government is aiming to operationalise the Single Point Mooring (SPM) facility by November. He said the operator appointment process is ongoing, and after technical evaluation, financial evaluation will follow, with commissioning targeted before November.

Officials said the combined initiatives aim to reduce vulnerability to global supply disruptions while improving efficiency in fuel handling and distribution across the country.