ERL lifeline: One lakh tonnes of Malaysian crude due by 13 Apr

The government has launched an urgent bid to procure 100,000 tonnes of crude oil from Malaysia to prevent a potential shutdown at the Eastern Refinery Limited (ERL). 
The country’s sole state-owned refinery is currently grappling with an acute shortage of raw materials following a prolonged disruption in global shipping.
According to sources at the Bangladesh Petroleum Corporation (BPC) and ERL, no new shipments of crude have reached Bangladeshi shores since 18 February. 
The supply chain has been hit hard by the escalating conflict in the Middle East and continued volatility along Red Sea shipping routes. The last consignment to be unloaded in Chattogram arrived from the United Arab Emirates (UAE) aboard the vessel “Omera Galaxy”.
In the weeks since, ERL’s reserves have plummeted to critical levels. Officials warn that the current stockpile is only sufficient to sustain operations until 12 or 13 April. 
Without an immediate infusion of fresh supplies, the refinery faces a forced temporary suspension of production.
To mitigate the crisis, the government has moved to secure a government-to-government (G2G) deal with Malaysia. If the arrangements are finalised as expected, the shipment should arrive in Bangladesh by 13 April.
Speaking to the Daily Sun on Saturday, ERL General Manager Tajul Islam confirmed that the refinery has already scaled back its daily throughput from the standard 4,500 tonnes to approximately 3,700 tonnes in an effort to stretch existing stocks.
“We can maintain operations until 12-13 April with what we have on hand,” Tajul said. “Meanwhile, the process of importing 100,000 tonnes of crude from Malaysia is in its final stages. Once that shipment arrives, we will be able to avoid a shutdown.”
He noted that while geopolitical tensions involving the US, Israel, and Iran have made traditional Middle Eastern routes increasingly hazardous, Malaysia offers a swifter and more dependable alternative.

“Navigating through the Strait of Malacca and the Bay of Bengal, the shipment can reach us in under 15 days. That speed is vital for navigating this current crisis,” he added.
Internal ERL data suggests the previous import of 99,646 tonnes was intended to last 24 days under normal operating conditions. However, with the import freeze now entering its 41st day, the facility has been forced to subsist entirely on its emergency reserves.
Bangladesh typically sources over half of its crude requirements from Saudi Arabia and the UAE. Currently, the “Nordic Pollux”, carrying 100,000 tonnes of crude, remains stationary at Ras Tanura port in Saudi Arabia, awaiting clearance to transit the Strait of Hormuz. Another shipment from the Red Sea port of Yanbu is not anticipated until early May.
This bottleneck has left the BPC with little choice but to pivot toward alternative markets.
The ERL refines roughly 1.5 million tonnes of crude annually, accounting for 20% to 25% of the nation’s total fuel demand. It is a linchpin of the domestic energy sector, particularly for the production of octane and diesel. With Bangladesh requiring approximately 460,000 tonnes of petrol and 415,000 tonnes of octane each year, the refinery’s output is essential in limiting the country's reliance on expensive finished fuel imports.
Despite the precariousness of the situation, Tajul Islam sought to downplay fears of a total collapse in production.
“Temporary shutdowns are not unprecedented,” he said, adding, “The refinery closes for one or two months every year for routine overhauling and maintenance. As such, there is no cause for public alarm.”

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