Bangladesh's BPC invites international suppliers for refined oil products

Bangladesh Petroleum Corporation has invited international suppliers to enlist for the supply of refined petroleum products on a CIF or CFR basis, according to a notice emailed to Platts, part of S&P Global Energy, dated April 13.

The enlistment process, conducted through an international request for quotation, aims to qualify suppliers for future deliveries of a wide range of refined products, BPC said in the invitation.

Products covered include 50 parts per million sulfur gasoil, Jet A-1 jet fuel, 180 CST high sulfur fuel oil, RON 95 gasoline, 0.5% sulfur marine fuel and LPG. Deliveries would be made on a CIF basis to Bangladesh's main oil marketing company installations in Chattogram, the single point mooring system at Maheshkhali, or other designated locations in the country.

BPC said shortlisted suppliers would be required to sign a Master Sale and Purchase Agreement, under which they may be invited to participate in future tenders for spot or term supplies. Interested suppliers may apply either individually or as part of a joint venture or consortium, subject to meeting eligibility criteria outlined in BPC's Standard Application Document for Enlistment.

Applications are scheduled to close at 4 pm local time (1000 GMT) on May 4. Submitted applications must be accompanied by a non-refundable application fee of $1,000, or its equivalent in Bangladeshi taka. Successful applicants will be required to pay a further enlistment fee prior to signing the MSPA.

"We have floated the tender to have a pool of refined oil suppliers who will be interested to supply oil whenever necessary for both short and long terms," BPC Chairman Md Rezanur Rahman told Platts on April 15.

The tender was floated amid the Middle East war and restrictions on ships passing through the Strait of Hormuz, which have hampered supplies of petroleum products to Bangladesh, he said.

Several oil suppliers have already announced "force majeure," and several more have deferred shipment schedules, Rahman said.

As of now, the BPC imports around half of its refined petroleum products through tendering and another half through government-to-government negotiations with suppliers, he said.

It never enlisted suppliers through the floatation of tenders, he said.

"With this tender, we want to shortlist the competitive petroleum product suppliers from around the world, like that of LNG imports," Rahman, who was the chairman of state-run Petrobangla and dealt with LNG imports, said.

Bangladesh has prepared a list of 24 suppliers to source LNG from the spot market, in addition to its long-term and short-term suppliers, he added.

Bangladesh relies heavily on imports to meet domestic demand for refined petroleum products, with BPC acting as the country's sole importer and distributor.

Platts reported earlier that Bangladesh's newly elected government is seeking support from the US, China, and India to bolster gasoil supplies, as conflict in the Middle East and constraints on flows through the Strait of Hormuz disrupt regional availability. BPC Chairman Md Rezanur Rahman said the country is struggling to meet domestic petroleum demand, with several suppliers delaying cargo deliveries, although no force majeure has been declared.