Bangladesh lets contract for refinery expansion project

Bangladesh Petroleum Corp. (BPC) has let a contract to China National Petroleum Corp. (CNPC) subsidiary China Petroleum Pipeline Bureau (CPP) for the construction of an offshore single-point mooring (SPM) and dual-pipeline as part the expansion of subsidiary Eastern Refinery Ltd.'s (ERL) 1.5 million-tonne/year refinery at Chittagong, Bangladesh (OGJ Online, Apr. 27, 2016).

CPP will deliver engineering, procurement, and construction services for the SPM and dual-pipeline project, which forms an integral part of the ERL refinery expansion and modernization works, CNPC said.

Alongside lowering the risk of accidental spills or leaks, the project, once completed, will enable the refinery to expedite unloading of crude and high-sulfur diesel (HSD) feedstock; shorten loading times for finished products; and reduce operating costs by eliminating the need for lightering during the loading and unloading process, CNPC and ERL’s web sites said.

While CNPC did not disclose a value of the EPC contract, ERL plans to make a total capital investment of about 49.4 billion taka ($623.3 million) to complete the SPM and dual-pipeline project by yearend 2018, the company said in project description posted to its web site.

This latest contract follows BPC’s $16.6-million award in April to Engineers India Ltd. (EIL) for the project management consultancy for installation of the ERL Unit 2 expansion at Chittagong, which will increase crude processing capacity at Bangladesh’s sole refinery by 3 million tpy to 4.5 million tpy.

The ERL Unit 2 project, which BPC plans to complete in phases over the next 3 years at an overall capital investment of $1.7 billion, comes as part of its program to boost the country’s production of petroleum products to help meet domestic demand; reduce the volumes and costs associated with importing fuels from abroad; and increase ERL’s output of fuels that meet more stringent environmental specifications.

SPM-pipeline project

ERL said the SPM and dual-pipeline project, which is a prerequisite for the ERL Unit 2 project and will be located at the west side of Maheshkhali Island to accommodate docking for a 120,000-dwt tanker, will involve unloading crude and HSD via two separate, 36-in. pipelines (offshore and onshore) for storage in tanks at Maheshkahli, from which the feedstocks will be pumped through two separate 18-in. onshore and offshore pipelines to the refinery for processing.

The use of two separate lines for crude and HSD supplies will eliminate product losses that otherwise would occur as a result of contamination if transported through a single line, ERL said.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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