All the tanks are slated to be built in Bagerhat near the Mongla sea port terminal. BPC has issued a tender seeking bids from companies to build these tanks, and deadline for submissions is May 19, he said.

The winning firm will need to build the storage tanks within 18 months from the date of signing the contract, he added.

“We are planning to store petroleum products like 0.25% sulfur gasoil, 180 CST high sulfur fuel oil, superior kerosene, 95 RON gasoline and 92 RON gasoline in the new storage tanks,” said project director Mosaddeque Hossain.

Construction cost for building the 14 tanks was estimated to be Taka 1.50 billion ($19.23 million), he said.

Of the 14 new oil storage tanks — three will have 15,000 mt capacity each, one with 10,000 mt capacity, one 7,000 mt capacity, five of 5,000 mt capacity each, one 4,000 mt capacity and three 3,000 mt capacity each.

BPC is building these new oil storage tanks to accommodate the mounting oil imports, Rahman said.

Bangladesh’s oil demand has surged after it launched a drive to increase the number of oil-based power plants in the country from mid-2010 to counter the impact of fast-depleting domestic natural gas resources, commissioning over three dozen new oil-based power plants by 2013.

BPC has projected that it may have to import around 5.90 million mt of crude oil and refined products during fiscal 2012-13 (July-June), up 11.32% from the year-ago period, Platts reported previously.

Building the new petroleum oil storage tanks will reduce demurrage paid on delayed discharges, Rahman said. BPC paid demurrages worth Taka 181 million ($2.29 million) on delays in discharging fuel oil and gasoil cargoes over July-December 2012, Platts reported earlier.

Demurrage charge is at $15,000/day based on a 20,000-mt refined oil products cargo in Bangladesh sea ports.