DHAKA: Bangladesh signed a USD1.004 billion financing agreement with the Islamic Development Bank on Thursday to modernize and expand Eastern Refinery, a project aimed at bolstering energy security and reducing reliance on imported refined petroleum products.
The financing package will support the expansion of the state-owned refinery in Chattogram, with completion targeted by 2030. Eastern Refinery, Bangladesh’s only crude oil refinery, currently has an annual refining capacity of 1.5 million metric tons. The project will add another 3 million metric tons of capacity.
The upgraded facility is expected to produce Euro-5 standard petroleum products, helping meet rising domestic fuel demand while reducing dependence on imports of refined fuel.
Officials said the expansion would strengthen Bangladesh’s fuel supply resilience and enable the country to meet about 45percent to 50percent of its petroleum product demand through domestic refining.