Super Petrochemical Seeks Permission to Import Heavy Crude for Unapproved Plant

Date:

Post View:

Super Petrochemical Seeks Permission to Import Heavy Crude for Unapproved Plant

B.Mirror Desk: Private entity Super Petrochemical PLC continues to construct an oil refinery despite lacking government approval. The company has now applied to the Bangladesh Petroleum Corporation (BPC) for permission to import large quantities of crude oil for use in the plant currently under construction. Their proposal requests authorization to import 400,000 tonnes of light crude and 800,000 tonnes of heavy crude for the year 2027. However, the absence of official government approval for the construction and operation of the plant has raised fresh concerns within the energy sector.

Energy experts warn that establishing a private-sector refinery without proper government authorization and oversight could pose risks to the nation’s energy security and existing policy frameworks. Meanwhile, even as the BPC moves forward with the expansion of the state-owned Eastern Refinery—the country’s only oil refinery—no effective measures have been taken to halt the construction of this unauthorized private plant.
In a letter sent to the BPC Chairman on October 27, Mohammad Mostafa Haider, Managing Director of Super Petrochemical, requested permission to import 400,000 tonnes of light crude and 800,000 tonnes of heavy crude for 2027. Previously, in a letter dated July 14 addressed to the Minister of Power, Energy and Mineral Resources, the company had outlined plans to refine light crude at its under-construction facility.
A review of the October 27 letter and related documentation reveals that condensate and light crude are presented interchangeably in the request for import authorization. Citing a BPC communication from August 10, the letter states that the company plans to supply the BPC in 2027 with 256,500 tonnes of octane, 119,000 tonnes of petrol, 466,500 tonnes of diesel, and 361,000 tonnes of High Sulphur Furnace Oil (HFO). The letter stated that to maintain this level of fuel supply, it would be necessary to import 400,000 tonnes of light crude (condensate) and 800,000 tonnes of heavy crude. It was also mentioned that the fuel produced by refining these imported raw materials would be supplied to the Bangladesh Petroleum Corporation (BPC).
However, in a separate letter sent to the Minister of Energy and Mineral Resources on July 14, the organization had outlined a completely different plan. It stated that the plant—which has a daily refining capacity of 35,000 barrels—is being constructed to process light crude. To this end, the organization expressed interest in importing 2 million tonnes annually of either ‘Arabian Light’ crude from Saudi Arabia or ‘Murban’ crude from the United Arab Emirates.
According to experts, as well as current and former officials familiar with the matter, there is a distinct difference between condensate and light crude; they cannot be treated as the same product. Furthermore, there is no precedent in any of the BPC’s previous permits or authorizations for classifying condensate as light crude.
A former General Manager of Eastern Refinery, speaking on condition of anonymity, noted that it is incorrect to categorize condensate as light crude oil. Condensate is essentially a by-product of gas extracted from gas fields, whereas crude oil originates from oil fields. These two raw materials differ in both their characteristics and their sources.
Energy expert and former member of the Bangladesh Energy Regulatory Commission, Maqbul-E-Elahi Chowdhury, also highlighted this distinction. He explained that while condensate is a type of light hydrocarbon, it cannot be equated with the light crude imported for refining at Eastern Refinery. Condensate comes from gas fields, while light crude is extracted from oil fields. Both raw materials can be refined to produce petroleum-based fuels. Meanwhile, in a letter sent to the minister on July 14, Super Petrochemical sought government support for the implementation of a crude oil refinery project with a daily capacity of 35,000 barrels. The letter stated that the project would have an annual refining capacity of 1.75 million metric tons and outlined plans to refine light crude. However, it did not mention that the project had yet to receive government approval.
According to relevant documents, a letter dated August 10—signed by Mohammad Zahid Hossain, General Manager of the Bangladesh Petroleum Corporation (BPC)—requested that Super Petrochemical provide estimates for potential fuel supplies for the year 2027. The letter noted that determining the projected supply volumes for various fuel grades—including octane, petrol, and diesel—was essential for the BPC to formulate its import plans.
In this regard, the company was initially asked to submit the data by July 30, 2026. As the information was not received by the deadline, a follow-up request was made to provide the supply projections—broken down by month and fuel grade—for the periods of January–June and July–December 2027, using a specified template, by August 12.
They were asked to submit proposal.
In response, a letter signed by Pranab Kumar Saha, Chief Executive Officer of Super Petrochemical, dated August 12, outlined a plan to supply a total of 1,203,000 tonnes of refined fuel to the Bangladesh Petroleum Corporation (BPC) in 2027.
According to the plan, 21,500 tonnes of octane and 10,000 tonnes of petrol are to be supplied each month for 11 months of the year, excluding February. Similarly, the plan includes the supply of 50,000 tonnes of diesel and 42,000 tonnes of HFO (Heavy Fuel Oil) per month from May through December.
Additionally, the letter specifies the supply of 20,000 tonnes of octane and 9,000 tonnes of petrol for February. For diesel, the proposed supply schedule is 12,500 tonnes in January, 11,500 tonnes in February, 12,500 tonnes in March, and 30,000 tonnes in April. The plan for HFO supply is also detailed in the letter.
The third paragraph of the letter states that a Crude Distillation Unit (CDU)—currently under construction with a daily capacity of 35,000 barrels—is scheduled to become operational in March 2027. The fuel supply volumes from April onwards have been determined with this timeline in mind.
Attempts to reach Super Petrochemical’s Managing Director, Mohammad Mostafa Haider, and CEO, Pranab Kumar Saha, via their mobile phones for comment were unsuccessful.
BPC Chairman Dr. Rafiqul Islam confirmed receiving a letter from Super Petrochemical requesting permission to import crude oil. He noted that the matter is currently under review by the relevant BPC team. However, he offered no comment on how a refinery plant could be constructed in the sensitive energy sector without government approval.
Dr. M. Shamsul Alam, an energy expert and advisor to the Consumers Association of Bangladesh (CAB), stated that fuel is a highly sensitive commodity globally. He emphasized that the construction of a refinery by a private entity in Bangladesh without government authorization poses a risk to the nation’s energy security. Furthermore, building such a facility without official approval constitutes a violation of the law. In this regard, the concerned entity should be held accountable, and action should be taken in accordance with the law.
It is worth noting that Super Petrochemical PLC currently supplies various petroleum products—including octane, petrol, and diesel—produced at its fractionation plant to the Bangladesh Petroleum Corporation (BPC). According to BPC data, in the 2024–25 fiscal year, the company supplied a total of 256,037 tonnes of petroleum products, comprising octane, petrol, diesel, MTT (Mineral Turpentine), Light MS (Motor Spirit), and SBPS (Special Boiling Point Spirit).
To produce these items, the company—with prior approval from the BPC—utilizes specific quantities of naphtha sourced from Eastern Refinery, domestic condensate from Petrobangla, and imported condensate.

 

Yasir Monon
Yasir Mononhttp://www.yasirmonon.com
News Editor, Business Mirror

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_img

Popular

More like this
Related

NBR Directs Banks to Freeze Accounts of 20 Individuals and Entities

B.Mirror Desk: have been taken to freeze the bank...

AB Bank disburse Agricultural Loans in Sirajganj

AB Bank PLC. has disbursed agricultural loans to marginal...

Sammilito Islami Bank holds Audit Committee Meeting

The 2nd meeting of the Audit Committee of state-owned...

931st Executive Committee meeting of Shahjalal Islami Bank held

The 931st meeting of the Executive Committee (EC) of...