Eastern Refinery 2nd unit tender likely by May, trial run targeted in 2029: State minister

The government is set to float a tender for the second unit of Eastern Refinery Limited by May, with trial operations expected to begin in early 2029, State Minister for Power, Energy and Mineral Resources Aninda Islam Amit has said.

Speaking to journalists after visiting the Eastern Refinery facility in Chattogram today (17 April), he said, "The government aims to bring the project to a visible stage of implementation within its current tenure."

"Once operational, the new unit will significantly enhance the country's capacity to refine crude oil locally and enable diversification of fuel sources," he added.

The state minister said the expansion will allow Bangladesh to import crude from a broader range of countries, reducing heavy reliance on the Middle East and lowering exposure to global market volatility and regional disruptions.

A significant share of the country's crude imports comes from Saudi Arabia and the United Arab Emirates.

The state minister said geopolitical instability in the Middle East since late February has disrupted oil shipments in March and April, adding that many import-dependent countries are facing similar pressures.

He said the government has already taken steps to secure fuel from alternative sources and assured that current refined fuel stocks remain at a comfortable level.

"Jet fuel reserves are sufficient for nearly six weeks, and supplies are adequate to meet demand in April and May, with planning underway for June," he added.

Eastern Refinery Ltd Managing Director Md Sharif Hasnat said refinery operations are currently running at a slower pace, with two units temporarily shut down, although production of petrol and bitumen continues.

He added that a shipment carrying around 100,000 tonnes of crude oil from Yanbu port in Saudi Arabia is expected to arrive later this month.

The proposed second unit is expected to have an annual refining capacity of around 3 million tonnes, double that of the existing facility, substantially boosting the country's overall fuel processing capability.

Although the project was conceived more than a decade ago and formally taken up in the mid-2010s, it has faced repeated delays due to financing and implementation challenges.

The latest move signals a renewed push to advance one of the country's most critical energy infrastructure projects.

Established in 1968, Eastern Refinery Limited remains the cornerstone of Bangladesh's fuel supply system, with a current annual refining capacity of approximately 1.5 million tonnes.