Eastern Refinery Limited resumes production after a 25-day shutdown

After remaining shut for 25 days, the country’s only state-owned oil refinery, Eastern Refinery Limited, has resumed operations.

Fuel oil refining restarted at 8:30am on Friday at the refinery in Chattogram’s Patenga area.

The refinery’s main Crude Distillation Unit (CDU) had remained closed since 12 April due to a shortage of crude oil.

Confirming the development to the Daily Sun, ERL General Manager (Development and Control) Mohammad Tajul Islam said, “Maintenance work has been completed successfully. The production process is now stable, and refined fuel is being prepared for supply to the national grid as quickly as possible.”

The refinery resumed operations after a vessel carrying 100,000 tonnes of Saudi crude oil arrived in Bangladesh on 5 May.

Why the crisis occurred

Operated under the Bangladesh Petroleum Corporation, the refinery relies entirely on imported crude oil. Due to instability in the Middle East, no crude shipments had arrived since 18 February. The disruption worsened as vessel owners became reluctant to sail through the Red Sea amid growing security concerns.

Earlier, a tanker named Nordic Pollux carrying 100,000 tonnes of crude oil became stranded near the Strait of Hormuz, while another shipment from the United Arab Emirates was cancelled over security fears.

According to BPC sources, two more crude oil consignments totaling 200,000 tonnes are expected to arrive later this month.

Managing Director of Bangladesh Shipping Corporation Commodore Mahmudul Malek said another vessel carrying 100,000 tonnes of Murban crude from Fujairah Port is scheduled to depart for Bangladesh on 11 or 12 May. Since the shipment will originate from Fujairah, the vessel will not need to pass through the Strait of Hormuz, significantly lowering security risks.

Bangladesh currently consumes more than 7 million tonnes of fuel oil annually. Around 92 percent of the demand is met through imports, while the remaining 8 percent comes from domestic sources. Of the imported fuel, nearly 1.5 million tonnes of crude oil are refined annually at Eastern Refinery.