Recommendation Report on Policy and Regulation Srgb
Total Page:16
File Type:pdf, Size:1020Kb
Bangladesh Asian Development Bank C1334 – January 2012 RFP HCU/CS-06 Strengthening of the Hydrocarbon Unit in the Energy and Mineral Resources Division (Phase II) Petroleum Refining & Marketing (Package # 06) Recommendation report on Policy and Regulation in association with srgb Strengthening of Hydrocarbon Unit (Phase II) – Petroleum Refining & Marketing (Package # 06) Recommendation report on policy and regulation Table of Contents Abbreviations ........................................................................................................ 3 Policy Executive Summary................................................................................ 5 1. Introduction............................................................................................................ 8 1.1 Energy Background ............................................................................................................................................................8 1.2 Towards a New Policy........................................................................................................................................................9 2. Energy Resources............................................................................................... 11 2.1 Natural Gas.............................................................................................................................................................................. 11 2.2 Coal............................................................................................................................................................................................. 13 2.3 Hydroelectic Power ........................................................................................................................................................... 13 2.4 Nuclear Power ...................................................................................................................................................................... 13 2.5 Renewable Energy Sources......................................................................................................................................... 14 3. Petroleum Products............................................................................................15 3.1 Liquid Fuels............................................................................................................................................................................ 15 3.2 LPG.............................................................................................................................................................................................. 16 3.3 Gas Field Condensates ...................................................................................................................................................17 4. Efficiency, Energy Conservation.....................................................................18 5. Energy Audits.......................................................................................................19 6. Research And Development ...........................................................................20 7. Petroleum Refining .............................................................................................21 8. Crude Oil Transportation, Cost....................................................................... 22 9. Refined Products Import, Transportation Cost ..........................................23 10. Product Pricing, Subsidy.................................................................................. 24 11. Refinery Policy and Regulations Issues ......................................................26 12. Price Control Policy...........................................................................................30 13. How Petroleum Product Prices Could Be Calculated In Bangladesh...31 13.1 Basic Fuel Price (BFP) ..................................................................................................................................................... 31 13.2 Components include:....................................................................................................................................................... 31 13.2.1 International part ............................................................................................................................................... 31 13.2.2 Domestic Elements .........................................................................................................................................32 13.3 Who sets and controls the petroleum product price?................................................................................34 13.4 What drives international petrol prices?..............................................................................................................34 SOFRECO - SRGB 1 Strengthening of Hydrocarbon Unit (Phase II) – Petroleum Refining & Marketing (Package # 06) Recommendation report on policy and regulation 14. Products Under Private Sector....................................................................... 36 15. Quality Control, Standards .............................................................................. 37 16. Adulteration ......................................................................................................... 38 17. Storage Capacity ............................................................................................... 39 18. Products Transportation....................................................................................41 18.1 Bangladesh Railways ....................................................................................................................................................... 41 18.2 Waterways............................................................................................................................................................................... 41 18.3 River Dredging..................................................................................................................................................................... 42 18.4 Pipeline .................................................................................................................................................................................... 42 19. Marketing & Distribution, Role Of Private Sector ......................................43 20. Health, Safety and Environment .................................................................... 44 20.1 Legal standards regarding emissions from the refinery are set by the........................................... 44 20.2 Permits for installations.................................................................................................................................................. 44 20.3 Requirements....................................................................................................................................................................... 44 20.3.1 Refinery .................................................................................................................................................................. 45 20.3.2 Marketing installations .................................................................................................................................. 45 20.3.3 Safety....................................................................................................................................................................... 45 20.3.4 Products-related environmental protection.....................................................................................46 20.3.5 Standards.............................................................................................................................................................. 47 SOFRECO - SRGB 2 Strengthening of Hydrocarbon Unit (Phase II) – Petroleum Refining & Marketing (Package # 06) Recommendation report on policy and regulation Abbreviations AG Arabian Gulf ASTM American Society for Testing and Materials BAPEX Bangladesh Petroleum Exploration & Production Company Limited BERC Bangladeshi Energy Regulatory Commission BFP Basic Fuel Price BIWTA Bangladesh Inland Water Transport Authority BPC Bangladesh Petroleum Corporation BPDB Bangladesh Power Development Board BRME Balancing, Modernizing, Replacing and Expansion BSC Bangladesh Shipping Corporation BSTI Bangladesh Standards and Testing Institute CCGT Combined-Cycle Gas Turbines CN Cetane number CPA Chittagong Port Authority CNG Compressed Natural Gas EPOL Emergency Preparedness Offshore Liaison ERL Eastern Refinery Limited FO Fuel oil FOB Free on Board FY Financial Year GDP Gross Domestic Product GtG Government to government HAZOP Hazard Operational Analysis HOBC High Octane Benzine Component IOC International Oil Company IP Institute of Petroleum JOCL Jamuna Oil Company Ltd Km Kilometer KAD Dhaka Airport Depot KPCL Karnataka Power Corporation Limited SOFRECO - SRGB 3 Strengthening of Hydrocarbon Unit (Phase II) – Petroleum Refining & Marketing (Package # 06) Recommendation report on policy and regulation LNG Liquidized Natural Gas LPG Liquid Petroleum Gas Mcf Thousand Cubic Feet M&D Marketing and Distribution MI Main Marketing Installations at Chittagong mmBTU Million British Thermal Unit Mmscft million standard cubic feet MPL Meghna Petroleum Ltd MS Motor Spirit MT Metric Ton MW Mega Watt NEP National Energy Policy PDB