The Islamic Development Bank which is headquartered in Jeddah loaned Bangladesh $105 million to finance the modernization of the only refinery owned by the country, according to a senior official.
The refinery which is owned by Eastern Refinery Limited and established 40 years ago can cleanse 1.5 million tons of crude annually. Bangladesh is seeking a loan of $ 300 million from the Islamic Development Bank to increase the capacity of the refinery which is located in the port city of Chittagong to 4.5 million tons.
Bangladesh imports from 3.4 to 3.8 million tons of fuel products annually including about 1.5 million tons of crude.
In the next 5 year, Bangladesh Petroleum Corporation which is owned by the country will need to import about 6.6 million tons annually of fuel and petroleum products to meet demand, according to officials in Bangladesh`s energy sector.
The refinery also operates in refining condensed gas collected from natural fields in the country. It produces 5000 barrels daily.
In Bangladesh, the annual cost of fuel imports range from $2.5 to $3 billion.