Bangladesh is considering a proposal to refine Russian crude oil in India before re-importing the finished fuel, as the country faces supply pressures caused by conflict in the Middle East.
According to people familiar with the developments, the arrangement under consideration would require Bangladesh to pay the costs of importing crude oil, refining it in India, and transporting the refined fuel.Bangladesh’s Department of Energy and Mineral Resources has already put forward the proposal this week, sending a request to the country’s Energy and Power Minister Iqbal Hasan Mahmud Toko. Dhaka-based sources told ET that the application seeks approval to start discussions with the Foreign Ministry to reach a government-to-government (G2G) agreement.This is because Bangladesh’s only state-run refinery in Chittagong is not considered suitable for processing Russian crude, which is mostly heavier in nature. With an annual refining capacity of 1.5 million tons, the facility is primarily designed to handle crude oil from the Middle East, making the country dependent on imported refined petroleum products.
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Energy cooperation between India and Bangladesh was also highlighted, with the rise in diesel imports from India featuring prominently during the Bangladesh Foreign Minister’s recent visit to India.
The two countries are already maintaining cross-border energy connectivity through the diesel pipeline running from Siliguri to Parbatipur in Dinajpur.This pipeline allows imports from Numaligarh Refinery Limited under a 15-year agreement signed in 2023.The temporary exemption from US sanctions related to Russian oil exports has opened a limited window for Bangladesh to consider indirect procurement routes.In addition, Bangladesh has proposed to import up to 600,000 tons of Russian diesel, according to previous ET reports.In a related development, the Russian Ambassador to Bangladesh, Alexander Khozin, met with the Minister of Energy, Energy and Mineral Resources, Iqbal Hassan Mahmud Toko, last month to discuss enhancing bilateral cooperation in the field of energy.
