The TK Group subsidiary Super Petrochemical PLC expects its expansion to cut Bangladesh Petroleum Corporation’s refined-fuel import bill by about $200 million a year while strengthening domestic supply.
Expansion to Strengthen Domestic Refining
Super Petrochemical PLC, a subsidiary of TK Group, is expanding its refinery and fuel-processing complex in Juldha, Chattogram, in a move expected to reduce Bangladesh Petroleum Corporation’s (BPC) refined-fuel import bill by around $200 million annually. The project is more than 80% complete and is scheduled to begin production in March 2027. The expansion will add 1.7 million tonnes of annual refining capacity to the company’s existing 0.5 million tonnes, taking total capacity to 2.2 million tonnes. This would make Super Petrochemical the country’s largest fuel processor, surpassing state-owned Eastern Refinery.
Reducing Dependence on Imported Fuel
Bangladesh consumes around 6.5 million tonnes of fuel oil annually, while state-owned infrastructure currently processes only about 23% of national demand. As a result, BPC remains heavily dependent on costly imports of refined petroleum products, pressuring foreign currency reserves. Super Petrochemical expects its expanded refinery to reduce this dependence by increasing the domestic supply of refined fuel. At full capacity, the facility could meet around 34% of Bangladesh’s total fuel oil demand, according to company officials.
Mohammad Mustafa Haider, group director of TK Group and managing director of Super Petrochemical, said the refinery is expected to start production next March. He said higher private-sector crude imports would help reduce BPC’s refined-fuel imports and save foreign currency.
Diesel to Lead Production
Super Petrochemical currently produces mainly octane, with BPC purchasing much of its output, while diesel production remains comparatively limited. After the expansion, diesel will become the company’s main product. The refinery will also produce around 450,000 tonnes of furnace oil annually, along with marine fuel and other petroleum products for the shipping and industrial sectors. The expansion will add 35,000 barrels per day of refining capacity, increasing the company’s total processing capacity to 51,700 barrels per day.
Storage Capacity Also Expanding
The company currently operates two condensate fractionating plants and can process around 16,700 barrels of naphtha per day. Its existing terminal has 116,650 tonnes of fuel storage capacity. Another 184,000 tonnes of storage capacity is under construction. Once completed, total storage capacity will reach approximately 300,000 tonnes, improving the company’s ability to maintain fuel inventories and support domestic supply.
Private Refining Sector Gaining Momentum
Industry participants said private investment in refining gained momentum after the government introduced a policy framework in 2021 allowing private companies to establish CRU-based fractionation plants and refineries and import condensate or line crude. Currently, four private plants supply refined petroleum products to BPC: Super Petrochemical, Aqua Refinery, Partex Petro Limited and Petromax Refinery. In FY2024–25, BPC spent BDT 501.95 billion on fuel oil imports, including BDT 396.92 billion on refined products. Around two-thirds of the import expenditure went towards refined fuel, highlighting the financial burden created by limited domestic refining capacity.
Experts See Benefits for Energy Security
Professor M Tamim, an energy expert and vice-chancellor of Independent University, Bangladesh, said greater private-sector refining and storage capacity could lower BPC’s costs if locally refined fuel is cheaper than imports. He particularly highlighted the potential benefits for diesel because of its high domestic demand. BPC officials also believe private refining could strengthen energy security and reduce foreign currency spending. With its expanded refinery expected to start production in March 2027, Super Petrochemical’s investment could significantly increase Bangladesh’s domestic refining capacity while reducing dependence on imported refined fuel.
Source. Bonik barta
