Anisul Islam Noor :
Bangladesh Petroleum Corporation (BPC) plans to import refined petroleum products through negotiations with oil suppliers from next month, sources said.
Talking with the correspondent, a senior BPC official said that the BPC would import around 1.5 million metric tonnes (mt) of diesel (0.05 per cent sulfur gasoil)
and jet fuel (A-1) during July-December 2017.
The BPC has estimated its need about 4.0 million M.T. of oil products in 2017, which include diesel, jet fuel, furnace oil and octane. The quantity is around 155 per cent higher than what was imported during the corresponding period of last year.
The petroleum products to be imported from July to December 2017 include 1.31 million tonnes of diesel and 190,000 tonnes of jet fuel, he said.
The Kuwait Petroleum Corporation (KPC) alone will export around 510,000 tonnes of diesel and 90,000 tonnes of jet fuel under term deal 2017, the official said.
The BPC will import the remaining 800,000 tonnes of diesel and 100,000 tonnes of jet fuel from nine other suppliers. These are Malaysia’s Petco Trading Labuan Company, Emirates National Oil Company, PetroChina Singapore, Chinese Zhenhua Oil Company Ltd, Petrolimex Singapore of Vietnam, Philippine National Oil Corporation, Indonesia’s Bumi Siak Pusako, Unipec Singapore, and Oman Trading International under term deal during July-December 2017.
The premium rates for diesel and jet fuel imports for H2, 2017 will be negotiated soon, he added.
After a series of negotiation, the BPC resumed term imports of diesel and jet fuel from the KPC in July after a brief period of one-and-a-half months. The KPC was the only term supplier that provided oil to BPC during H2, 2016.
During January-June 2017 period, the BPC has been importing around 510,000 tonnes of diesel and 90,000 tonnes of jet fuel from the KPC and around 250,000 tonnes of diesel from nine other suppliers under term deal.
The premium rate is US$2.30 per barrel to Mean of Platts Arab Gulf (MoPAG) gasoil assessments for gasoil and $3.0 per barrel to MoPAG assessment for A-1 jet fuel for first half of 2017 until June 2017.
The BPC is currently importing 1.175 million tonnes of diesel, jet fuel and furnace oil under its second open tender awarded for H1 2017, said the official.
It initiated importing fuel under open tendering from June 2016 after a hiatus of 15 years.
Prior to 2000, the BPC had imported oil products via tenders since its inception in 1977, but had switched to inking direct term contracts from 2000 as it experienced numerous delays in the delivery of cargoes supplied through its previous tender system. Also, it found the quality of some of the oil products supplied through the previous tender system to be substandard. The government has decided to meet half of its refined product import requirements in 2017 through the open tender system, and the other half through government-to-government negotiations.
Bangladesh Petroleum Corporation (BPC) plans to import refined petroleum products through negotiations with oil suppliers from next month, sources said.
Talking with the correspondent, a senior BPC official said that the BPC would import around 1.5 million metric tonnes (mt) of diesel (0.05 per cent sulfur gasoil)
and jet fuel (A-1) during July-December 2017.
The BPC has estimated its need about 4.0 million M.T. of oil products in 2017, which include diesel, jet fuel, furnace oil and octane. The quantity is around 155 per cent higher than what was imported during the corresponding period of last year.
The petroleum products to be imported from July to December 2017 include 1.31 million tonnes of diesel and 190,000 tonnes of jet fuel, he said.
The Kuwait Petroleum Corporation (KPC) alone will export around 510,000 tonnes of diesel and 90,000 tonnes of jet fuel under term deal 2017, the official said.
The BPC will import the remaining 800,000 tonnes of diesel and 100,000 tonnes of jet fuel from nine other suppliers. These are Malaysia’s Petco Trading Labuan Company, Emirates National Oil Company, PetroChina Singapore, Chinese Zhenhua Oil Company Ltd, Petrolimex Singapore of Vietnam, Philippine National Oil Corporation, Indonesia’s Bumi Siak Pusako, Unipec Singapore, and Oman Trading International under term deal during July-December 2017.
The premium rates for diesel and jet fuel imports for H2, 2017 will be negotiated soon, he added.
After a series of negotiation, the BPC resumed term imports of diesel and jet fuel from the KPC in July after a brief period of one-and-a-half months. The KPC was the only term supplier that provided oil to BPC during H2, 2016.
During January-June 2017 period, the BPC has been importing around 510,000 tonnes of diesel and 90,000 tonnes of jet fuel from the KPC and around 250,000 tonnes of diesel from nine other suppliers under term deal.
The premium rate is US$2.30 per barrel to Mean of Platts Arab Gulf (MoPAG) gasoil assessments for gasoil and $3.0 per barrel to MoPAG assessment for A-1 jet fuel for first half of 2017 until June 2017.
The BPC is currently importing 1.175 million tonnes of diesel, jet fuel and furnace oil under its second open tender awarded for H1 2017, said the official.
It initiated importing fuel under open tendering from June 2016 after a hiatus of 15 years.
Prior to 2000, the BPC had imported oil products via tenders since its inception in 1977, but had switched to inking direct term contracts from 2000 as it experienced numerous delays in the delivery of cargoes supplied through its previous tender system. Also, it found the quality of some of the oil products supplied through the previous tender system to be substandard. The government has decided to meet half of its refined product import requirements in 2017 through the open tender system, and the other half through government-to-government negotiations.
