KPI plans to construct $ 6b crude oil refinery in Bangladesh

Kuwait Petroleum International (KPI), an affiliate to Kuwait Petroleum Corporation (KPC), is considering development of $6bn crude oil refinery, with a production capacity of 10 million tons per year in Bangladesh, a high-ranking oil sector official said.

Recently, officials from KPI, Bangladesh Petroleum Corporation (BPC) and Board of Investment (BoI) met in Bangladesh to discuss details required for constructing the crude oil refinery, according to sources.

crude oilKPI is seeking the required infrastructure in the project site including land and its development, electricity, fresh water, roads and communication from the Bangladeshi government.

The Financial Express cited BPC chairman Eunusur Rahman as saying: “KPI informed us that a 0.3m barrels per day crude oil refinery would be of a standard capacity refinery it wants to build and it should not be less than 0.2m barrels per day capacity for its economic viability.”

“We have informed KPI about the benefits of foreign direct investment in Bangladesh, which include tax holiday for a certain period, 100 per cent profit repatriation etc.

“KPI also wants that the refinery must have options for future expansions to cater to the needs of growing petroleum demand in the country as well as the region.

“The refinery project might be of a joint venture with BPC or KPI alone could build it with its international partners, while the modality of the project would be decided later.”

“We shall send the outcome of the discussion with the KPI to the Energy and Mineral Resources Division of the ministry of Power, Energy and Mineral Resources (MPEMR) for future action.”

Meanwhile, KPI also completed feasibility study on the refinery project.

-Energy Business Review