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CVO Petrochemical Refinery goes into production

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CHITTAGONG, Apr 2: CVO Petrochemical Refinery, the country’s first ever public limited company in the sector, started production of fuel and chemical at its plant in Nasirabad industrial area on the Baizid Bostami Road today.

Industries Minister Amir Hossain Amu has inaugurated the plant by switching on the button at a function at the plant site urging entrepreneurs to invest in the alternative energy sector to meet growing demand of energy.

Including the CVO Petrochemical there are nine condensate fractionation plants in the country’s private sector but none of them except the CVO is enlisted with the capital market, the minister said.

He said petrochemical is a very important ingredient for industrialisation as production in industry cannot be thought of without power and energy.

The demand for electricity and energy is increasing rapidly in the country and the government of Sheikh Hasina has enhanced production of electricity from 3000 megawatts to 10,000 megawatts which is a historic achievement of the government. But yet the demand for electricity is growing at a faster pace than supply for which we must emphasise on the alternative energy, he said.

“The petrochemical to be annually produced in this single plant alone would require extra expenditure of Tk 3.50 billion from the government exchequer. With this plant entering into full production the government would save that amount of money in foreign exchange. I would urge other entrepreneurs to come forward with investment schemes as the government has opened up the industry to the private sector,” Amu said.

Presiding over the function chief adviser of the CVO Petrochemical Moinuddin Khan Badal, MP said he is one of the primary shareholders for a long time. “It is strange that this company has have survived so long for its unmixed struggle of the sponsors and unending support of the shareholders because it lived out of a fully dying entity.”

“They have done two things. They have not wrapped up in fear and kept on fighting. On the other hand, the public shareholders are the real unsung heroes who kept on extending support. This transition of the plant was not a very easy task,” he said seeking all-out cooperation of the government in running the CVO Petrochemical.

Badal further said that Chittagong has been deprived of gas for a long time which compelled many industries to suspend production.

“Investment worth Tk 200 billion remains idle due to lack of gas in Chittagong region. When national gas production was 1700 million cubic feet per day (mmcfd) this region would get about 300 mmcfd of gas. But now as the national production has increased to 2200 mmcfd, the share of Chittagong has decreased to 200 mmcfd, barely 40 per cent of its demand, while the share of Dhaka and Comilla is 70 per cent,” the lawmaker said.

CVO Petrochemical Refinery was enlisted with two bourses of the country seven years back and the sponsor shareholders and public shareholders hold 50 per cent each of its five million ordinary shares.

Sponsors said the refinery has been established as a mode of diversification from edible oil industry, earlier known as Chittagong Vegetable Oil, in order to achieve better trading result to woo its shareholders who laid immense trust for holding up their investment in the company despite not getting any profit for the last eight years due to extreme loss in edible oil business.

The company initially produced ‘phulcophy’ brand soyabean oil and ‘gold cup’ brand vegetable ghee, side by side running their original petrol and lubricant business through a petrol filling station set up 67 years back.

In the wake of receiving the first consignment of gas condensate (raw material) as part of the continuous process the company has decided to launch the test run of the refinery plant today, they said.

“After submitting the satisfactory result of test run to Bangladesh Petroleum Corporation (BPC) and the Petrobangla we shall be awarded the final allotment of the required quantity of condensate by the Ministry of Energy and Mineral Resources for commercial operation in the plant,” said DMD of the company Nizam Uddin Mahmood Hossain.

Installation of the condensate fractionation plant with the annual production capacity of 50,000 metric tonnes was completed several months back and was duly inspected and certified by Bangladesh University of Engineering and Technology, BPC (Bangladesh Petroleum Corporation) and Petrobangla as per clause of the NOC issued by the government.

The plant has been initially allotted 3000 metric tonnes of gas condensate, raw materials for test run. To procure the allotted quantity of gas condensate the company had executed a buy/sell agreement with Sylhet Gas Fields Ltd on March 16 last as per the order given by Petrobangla to Sylhet Gas Fields Ltd.

The function was also addressed by city Awami League president ABM Mohiuddin Chowdhury as special guest, general secretary of city AL AJM Nasiruddin, chairman of CVO Petrochemical Shamsul Alam Shamim, chief consultant Engineer AFM Ishaque, chief finance officer Mizanur Rahman Zaved, chief auditor Ahmadul Haq Hasan and shareholder ASM Jashim Uddin.

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Source: Financial Express

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