Eastern Refinery Modernization to Process 4.5 Million Tonnes Annually

The Government of Bangladesh and the Islamic Development Bank (IsDB) reached a historic financing arrangement in a significant effort to improve national energy security and reduce dependence on imported refined oil. The Eastern Refinery will receive $1,004.29 million, or almost BDT 12,000 crore, from the IsDB for expansion and modernization. The facility’s capacity to refine 1.5 million metric tons of oil annually will be tripled to 4.5 million metric tons due to this significant investment.

Mr. Anasse Aissami, Director General of Country Programs at IsDB, and Dr. Mohammad Mizanur Rahman, Additional Secretary of the Economic Relations Division (ERD), formally signed the funding agreement last Thursday. The significant event was signed by IsDB Group Chairman Dr. Muhammad Al Jasser and Prime Minister Tarique Rahman. This effort, which will be executed by the Bangladesh Petroleum Corporation (BPC) under the Energy and Mineral Resources Division, is reportedly the largest investment made by the IsDB in a single Bangladeshi project.

The renovated Eastern Refinery will significantly impact the nation’s petroleum supply chain when it is fully operational. The government hopes to ensure a stable energy supply and provide a way to generate sustainable, Euro-5 standard petroleum products by expanding its main oil refinery. The country will become far less dependent on expensive imported refined fuel oil due to this strategic growth. As a result, the project is expected to save significant foreign exchange reserves and provide long-term stability to Bangladesh’s entire energy supply system.

PM Tarique Rahman had a courtesy call from IsDB Group Chairman Dr. Muhammad Al Jasser after the formal agreement. Dr. Al Jasser made a strong commitment during their productive conversation to keep offering the support needed to carry out Bangladesh’s development goals. The PM responded by stating clearly how important soft financing is to future projects. In addition, he promised full-encompassing government collaboration to enhance the long-standing and historic relationship between Bangladesh and the IsDB.