More diesel shipments arriving

More shipments of fuel oil are on the way. Two vessels carrying 60,000 tonnes of diesel are scheduled to arrive in Chattogram on Friday.

The government has also secured confirmation of at least four additional diesel shipments this month.

As a result, although stock levels have declined, the Energy Division does not currently foresee any immediate risk to maintaining supply.

According to the Power, Energy and Mineral Resources Division, the demand for diesel in April is 400,000 tonnes. At present, there is approximately 125,000 tonnes of operational stock.

In addition, there are around 80,000 tonnes held in reserve, which can be utilised in emergencies if required. Plans are in place to import a further 325,000 tonnes of diesel this month.

Of this, the arrival of between 165,000 and 168,000 tonnes has already been confirmed.

The state-owned Bangladesh Petroleum Corporation (BPC) is responsible for importing and supplying fuel oil.

Sources at BPC stated that two vessels carrying 60,000 tonnes of diesel from regular supplier Unipec Singapore, a Chinese company, are scheduled to arrive on 3 April (Friday). The same company will supply two more shipments later this month.

One of these will carry 30,000 tonnes of diesel, while the other will bring between 15,000 and 18,000 tonnes of diesel along with 10,000 tonnes of jet fuel.

Additionally, two vessels from Indonesian company BSP are expected to deliver a total of 60,000 tonnes of diesel, each carrying 30,000 tonnes.

Under an existing agreement, a further 20,000 tonnes of diesel will arrive from India via pipeline this month.

Iqbal Hasan Mahmud Tuku, adviser on Power, Energy and Mineral Resources, told Prothom Alo, “We have procured diesel in excess of demand. New sources are supplying diesel. We have ensured an adequate supply of octane. We are moving forward with a plan to build reserves equivalent to three months’ excess demand. Therefore, there will be no shortage of fuel.”

According to BPC sources, fuel oil requirements up to June have already been secured in advance. However, delays in vessel arrivals following the outbreak of conflict in the Middle East have created some strain.

The failure of six diesel shipments to arrive last month reduced stock by 150,000 tonnes. At the same time, concerns over the conflict have led to increased purchasing of fuel.

Compared with March of the previous year, the supply of diesel and petrol was slightly reduced this March, although octane supply increased.

The Energy Division stated that the Cabinet Committee on Government Purchase has approved proposals to procure 200,000 tonnes of diesel from A&A Energy Oil and Gas LLC and 100,000 tonnes from Petrogas International.

Approval has also been granted to purchase 100,000 tonnes of diesel from ExxonMobil Kazakhstan Incorporated (EMKI) and 60,000 tonnes from Indonesia’s PT Bumi Siak Pusako Zapin.

Additionally, a proposal to procure 100,000 tonnes of crude oil from Abir Trade and Global Markets has been approved.

All of these represent new sources. The authorities are purchasing fuel from these suppliers through direct procurement methods, considering the emergency situation.

However, these suppliers have not yet confirmed delivery schedules, and efforts are ongoing to expedite supply.

According to BPC sources, fuel oil requirements up to June have already been secured in advance. However, delays in vessel arrivals following the outbreak of conflict in the Middle East have created some strain.

The failure of six diesel shipments to arrive last month reduced stock by 150,000 tonnes. At the same time, concerns over the conflict have led to increased purchasing of fuel.

Compared with March of the previous year, the supply of diesel and petrol was slightly reduced this March, although octane supply increased.

The Energy Division stated that the Cabinet Committee on Government Purchase has approved proposals to procure 200,000 tonnes of diesel from A&A Energy Oil and Gas LLC and 100,000 tonnes from Petrogas International.

Approval has also been granted to purchase 100,000 tonnes of diesel from ExxonMobil Kazakhstan Incorporated (EMKI) and 60,000 tonnes from Indonesia’s PT Bumi Siak Pusako Zapin.

Additionally, a proposal to procure 100,000 tonnes of crude oil from Abir Trade and Global Markets has been approved.

All of these represent new sources. The authorities are purchasing fuel from these suppliers through direct procurement methods, considering the emergency situation.

However, these suppliers have not yet confirmed delivery schedules, and efforts are ongoing to expedite supply.

According to sources at the Ministry of Foreign Affairs, of the six vessels granted permission to pass through the Strait of Hormuz, one belongs to Bangladesh Shipping Corporation, while the remaining five are chartered vessels.

Two of these vessels are expected to carry fuel oil, while the other four will transport liquefied natural gas (LNG).

Bangladesh imports refined fuels such as diesel, octane, furnace oil, and jet fuel from various countries, while crude oil is sourced from Saudi Arabia and the United Arab Emirates.

The country refines this crude oil at its sole state-owned refinery, Eastern Refinery Limited (ERL), producing diesel, petrol, furnace oil, and other fuels.

On average, ERL produces 60,000 tonnes of diesel per month. However, since the outbreak of conflict in the Middle East, crude oil supplies from Saudi Arabia and the United Arab Emirates have ceased.

With current reserves, ERL can maintain production for only one more week. Consequently, the Bangladesh Petroleum Corporation (BPC) has arranged the urgent import of 100,000 tonnes of crude oil from Saudi Arabia.

In addition to regular suppliers such as China, India, Singapore, and Malaysia, Bangladesh is placing emphasis on importing crude and refined fuel from Nigeria, Azerbaijan, Kazakhstan, Angola, Australia, and the United States.

Following a temporary 30-day relaxation of United States sanctions, Bangladesh has initiated efforts to import 600,000 tonnes of diesel from Russia over the next two months.

BPC has stated that there is no concern regarding petrol and octane supplies in April.

The demand for octane this month stands at 37,000 tonnes, of which 30,000 tonnes are expected to come from domestic private refineries.

In addition, 50,000 tonnes will be imported within the month. A vessel carrying 25,000 tonnes of octane is scheduled to arrive from Singapore on 6 April.

The demand for petrol in April is 44,000 tonnes. Of this, 35,000 tonnes are expected to be sourced locally. To address the remaining shortfall, a portion of octane will be converted into petrol.