Kuwait KPC to provide Bangladesh gas with vessels under 20 years old

Kuwait Petroleum Firm, or KPC, has consented to provide fuel to Bangladesh utilizing vessels which are less than two decades old-- overturning an earlier policy where it utilized vessels approximately 25 years of ages-- following a conference in Kuwait with Bangladesh Oil Corporation, an elderly Bangladesh government official stated Thursday.

" KPC has actually consented to our proposal and will supply fuel with vessels according to our demand from the following calendar year," a BPC authorities stated.

Calls to a KPC manager for comment went unanswered at mid-day Thursday.

Bangladesh had earlier asked BPC to quit importing oil items using vessels more than 20 years old from 2011 in line with the International Maritime Organization requirements. However KPC had actually lobbied to be allowed to continue supplying gas to Bangladesh using vessels as much as 25 years of ages and also supplied to reduce fuel costs if permitted to do so.

click here was forced by Kuwait to relax its guidelines on permitting the use of vessels more than twenty years old to supply gas in 2009 as KPC had told BPC that it would bill higher costs and also reject letters of credit scores from Bangladesh's state-owned industrial financial institutions if it failed to approve the problem.

Independently, KPC was compelled to repossess a minimum of 2 consignments of jet fuel of 10,000 mt each late in 2015 as the gas was located to be substandard. It subsequently changed the two freights.

Currently, BPC has a take care of the KPC under which the firm is to provide 520,000 mt of gasoil at a premium of $3.40/ barrel to the Mean of Platts Arab Gulf evaluation and 140,000 mt of jet fuel at a costs of $4.40/ b to MOPAG over July-December 2010.

Kuwait has been supplying gasoil as well as jet fuel to Bangladesh under term agreements considering that 2003, satisfying essentially all the nation's annual demand However the plan foundered in 2008 when Kuwait enforced more conditions on letters of credit score and also suspended the delivery of 8 cargoes motivating BPC to seek brand-new sources.

BPC currently imports petroleum kind Kuwait's KPC, Malaysia's Petco, Philippines' PNOC, Maldives' MNOC as well as Egypt's Midor.

BPC is forecasted to raise its yearly oil imports by over 33% to 4.85 million mt/year following year from 3.70 million mt/year as the nation relocates to tackle a power dilemma by building lots of new gasoil- and also gas oil-fired power plants.

At the same time, BPC is moving to raise its subsidiary Eastern Refinery Limited's refining capacity to 4.5 million mt/year from 1.5 million mt/year to satisfy the skyrocketing oil need.