Bangladesh seeks gasoil cargoes from China, India amid supply crunch

Bangladesh's newly elected government is seeking assistance from the US, China and India to boost gasoil availability amid the Middle East conflict and restrictions on flows through the Strait of Hormuz, state-run Bangladesh Petroleum Corp. Chairman Md Rezanur Rahman told Platts, part of S&P Global Energy, on March 12.

The country is struggling to meet domestic demand for petroleum products as many oil suppliers are delaying cargo deliveries, although no supplier has announced force majeure yet, Rahman said.

Bangladesh has already sought a temporary waiver of US sanctions to import energy products from Russia to mitigate the fuel crunch, he added.

Finance Minister Amir Khasru Mahmud Chowdhury made the request to US Ambassador to Bangladesh Brent T. Christensen on March 11.

"The US has already granted a waiver to India, allowing it to temporarily purchase Russian oil, waiving sanctions. Bangladesh is seeking a similar waiver," a BPC official quoted the minister as saying, adding that it would provide significant support to the country, which has limited alternatives to increase its oil stocks.

Cargoes from Asian suppliers

Separately, Bangladesh has sought assistance from China for oil product supplies, Rahman said. As a result, BPC is set to receive at least three gasoil cargoes of about 30,000 metric tons each over March 13-29, he added.

The country has also requested India to provide at least two gasoil cargoes of 30,000 mt each, according to the BPC official.

Bangladesh is making efforts to import 20,000 mt/month of 0.005% gasoil, up from the current 15,000 mt/m, through an existing cross-country pipeline from Numaligarh Refinery Ltd. in India to Parbatipur in northern Bangladesh, the official said.

To cope with supply constraints of petroleum products, the country has introduced rationing of oil at petrol pumps, restricted lighting in shopping malls and announced the early closure of public universities well ahead of the upcoming Eid al-Fitr, the official added.

BPC is the sole entity in Bangladesh that handles 0.005% gasoil, jet A-1 fuel, 95 RON gasoline and marine fuel imports.

Bangladesh imports about 7.5 million mt/year of refined and crude oil combined to meet domestic demand, the BPC official said.