Eastern refinery set to resume operations

Eastern Refinery PLC, Bangladesh’s sole state-owned fuel refinery, is scheduled to restart production on 7 May 2026, ending a historic operational halt caused by regional geopolitical tensions. Senior officials confirmed that the facility’s crude oil processing unit had been offline since 14 April 2026 after the conflict in the Middle East severely disrupted global shipping routes, leading to a critical shortage of raw materials.

The resumption of activity follows the arrival of a significant shipment from Saudi Arabia. According to Md Mostafizur Rahman, Deputy General Manager (Planning and Shipping) at Eastern Refinery, a vessel carrying 100,000 tonnes of crude oil is expected to berth at Chattogram Port on 5 May 2026. Following the discharge of the cargo, refining processes will recommence on 7 May 2026. Rahman noted that the immediate supply outlook is positive, with a second vessel scheduled to arrive later this month, which is expected to maintain a steady flow of operations for the foreseeable future.

The recent disruption marked a significant milestone in the refinery’s history. Since it began commercial operations in 1968, the facility had never previously been forced to stop production due to supply constraints. The crisis was triggered by a total cessation of crude oil imports after 18 February 2026, as maritime traffic through the Strait of Hormuz faced severe challenges. In response, the Bangladesh Petroleum Corporation (BPC) initiated alternative logistics strategies. The current shipment, transported by the vessel MT Ninemia, successfully utilised a route through the Red Sea to bypass the most volatile areas.

The refinery typically processes Arabian Light from Saudi Arabia and Murban crude from the United Arab Emirates, with annual imports totalling approximately 1.5 million metric tonnes. To further bolster national reserves, the Bangladesh Shipping Corporation has indicated that an additional 100,000 tonnes of crude oil is expected to arrive from the United Arab Emirates by the end of May 2026.