Bangladesh signs gasoil deal with In­dia

Chemical Industry Digest - - News & Views -

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.

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