Bangladesh signs gasoil deal with India
Bangladesh has signed a long-term sales and purchase agreement with an Indian refiner to import gasoil to meet the country’s energy demand.
The deal between Bangladesh Petroleum Corp (BPC) and Numaligarh Refinery Limited (NRL) was signed in the presence of India’s External Affairs Minister, Sushma Swaraj.
The deal with NRL, which is owned by Bharat Petroleum Corp Ltd (BPCL), is the country’s first longterm agreement with any Indian supplier. Under the deal, BPC will take up to 250 Mtpy of gasoil from NRL for the first three years of the deal to the BPC’s northern fuel depot via a 131-km (79 mile) pipeline, which will be built by India.
BPC will pay a premium of $5.50 per barrel over Middle East quotes under the 15-year deal, up from the current premiums of $2.20 a barrel for gasoil cargoes it receives by tanker through the country’s southeastern port of Chittagong.
NRL already supplies a small volume to state-owned BPC for the country’s northern region. The refinery, located in the eastern Indian state of Assam, will supply around 22,000 tonnes of gasoil with a sulphur content of 500 parts per million (ppm) between October and December by railroad, BPC officials said.