September 02, 2013 [The Daily Star] - Omera Fuels Ltd, a sister concern of MJL Bangladesh, has set up a Tk 100 crore petroleum oil storage terminal, in a drive to increase the country’s fuel reserve required to run independent power plants.
The capacity of the terminal is 70,000 tonnes, which is 63 percent more than the combined capacity of the three state-owned entities: Padma Oil, Meghna Petroleum and Jamuna Oil.
“The terminal is a fantastic solution for quick rental power plants that can import and manage its inventory efficiently,” Azam J Chowdhury, chairman of Omera Fuels, told The Daily Star yesterday.
Moreover, the terminal will help importers reap benefits from price fluctuations in the international market. “When the fuel price is less, buyers can import more and store it for future use.”
The issue of oil storage came to the fore in recent years after the incumbent government, to overcome the electricity crisis, allowed oil-fired independent or quick-rental power plants.
The country got through around 11 lakh tonnes of furnace oil last year, with its consumption projected to hit 50 lakh tonnes in 2014.
“Existing public sector storage facilities look inadequate for import and distribution of furnace oil. The Omera terminal will ease the situation,” said Salah Uddin Ahmed, assistant general manager of MJL Bangladesh.
“We are now waiting on permission for jetty use from Bangladesh Petroleum Corporation,” Ahmed said. The commercial operation may start this month.
The move, the Omera Fuels chairman, said is testament to the fact that public-private partnerships can flourish. MJL Bangladesh is 25 percent owned by Jamuna Oil Company.
