CVO Petrochemical Refinery suspends production due to condensate crisis | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Wednesday
June 07, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
WEDNESDAY, JUNE 07, 2023
CVO Petrochemical Refinery suspends production due to condensate crisis

Energy

TBS Report
06 July, 2020, 09:40 am
Last modified: 06 July, 2020, 09:46 am

Related News

  • Country sees 2 deaths from Covid-19 after two months
  • First case of new Covid sub-variant Omicron BF.7 detected in Bangladesh: IEDCR
  • Genome sequencing reports of Chinese nationals infected with Covid by Sunday: IEDCR
  • 20 Covid cases reported in 24 hours
  • Right info most cost-effective for pandemic management

CVO Petrochemical Refinery suspends production due to condensate crisis

An official of Petrobangla said the government decided this because of the poor production of natural gas due to the novel coronavirus pandemic

TBS Report
06 July, 2020, 09:40 am
Last modified: 06 July, 2020, 09:46 am

CVO Petrochemical Refinery has suspended production for three months after Petrobangla suspended the supply of condensate – the raw material used to produce fuel products such as petrol, diesel, kerosene and octane – to the refinery.

Condensate – a by-product of gas – is mined together with natural gas in the gas fields. All private refineries are dependent on Petrobangla – the government-owned oil and gas corporation – for this sole raw material.

Complying with an order of the Energy and Mineral Resources Division, Petrobangla has suspended the supply of condensate to all private refineries for three months – from July to September.

"The government took the decision because of the poor production of natural gas due to the novel coronavirus pandemic," said an official of Petrobangla. 

An official of the refinery said now the company will not be able to continue production for the three-month period as the condensate is the sole raw material used in its condensate fractional plant supplied by Petrobangla.

However, Petromax Refinery, which produces fuel by using condensate, said it did not receive a letter from Petrobangla regarding a suspension on condensate supply.

Refinery is a subsidiary of Shahjibazar Power Company Limited – which is a listed company on the share market.

Yeasin Ahmed, company secretary of Shahjibazar Power, told The Business Standard, "We have not received a letter from Petrobangla on this issue. Our production is ongoing amid the novel coronavirus pandemic."

CVO Petrochemical Refinery

Of the refineries, only CVO Petrochemical Refinery is listed on the share market. In 2014, the company shifted its business from producing edible oil to refining condensate.

It entered into an agreement with the Jalalabad Gas Field to buy condensate. The agreement will expire on December 31, 2020.

The company is engaged in the production and sale of fuel like motor spirit, high speed diesel and mineral turpentine from natural gas condensate. The installed production capacity of the company is 150 tonnes per day.

In the first three quarters of the 2019-20 financial year, the company incurred a loss of Tk0.37 per share. During that period, its revenue dropped by four percent to Tk52.92 crore.

The company official said due to lack of condensate supply, the company could be able to utilise only 20 percent of its total production capacity. The company wrote the authorities several times in this regard but no solution has yet been found.

Petromax Refinery also losing business

Petromax started commercial operations in 2013. Octane is its main product, but the company also produces small quantities of diesel, petroleum and kerosene. It buys condensate from the Rupantarito Prakritik Gas Company.

Shahjibazar Power, a sister concern of Youth Group, holds a 90 percent share of Petromax Refinery with an investment of Tk90 crore.

In the fiscal year 2013-14, Petromax earned Tk362.35 crore and made a net profit of Tk20.59 crore. The following year, fiscal year 2014-15, the company earned a maximum of Tk764.26 crore and made a net profit of Tk72.88 crore. Since then, its business has declined.

In the first three quarters of the 2019-20 financial year, revenue of the company fell by 12 percent to Tk379.93 crore. Further, it posted a loss of Tk5.12 crore from its refinery business.

Bangladesh

CVO Petrochemical Refinery / Economic Impact of Coronavirus / Coronavirus impact / Coronavirus Pandemic / Covid-19 effect / Covid -19 in Bangladesh / Covid-19 crisis

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Digital bank licence requires Tk125cr capital
    Digital bank licence requires Tk125cr capital
  • New income tax law to be hard on evaders, simplifies rules for businesses
    New income tax law to be hard on evaders, simplifies rules for businesses
  • RMG export income rises, raw material imports fall in Q1
    RMG export income rises, raw material imports fall in Q1

MOST VIEWED

  • 2 lakh trees to be planted in monsoon: Atiqul Islam
    Aminbazar landfill will generate 42.5MW from waste: Mayor Atiq
  • File Photo: State Minister for Power, Energy and Mineral Resources Nasrul Hamid/UNB
    Nasrul Hamid faces opposition heat in parliament
  • Illustration: Collected
    Power cuts plague: In face of threats, attacks, police ordered to protect power, energy facilities
  • People suffer as severe load shedding continues countrywide
    People suffer as severe load shedding continues countrywide
  • Photo: Collected
    Imagine if electricity generation capacity were still 3000MW like in BNP-Jamaat govt period: Nasrul Hamid
  • File photo
    Frequent power cuts cripple hospitals, education institutes

Related News

  • Country sees 2 deaths from Covid-19 after two months
  • First case of new Covid sub-variant Omicron BF.7 detected in Bangladesh: IEDCR
  • Genome sequencing reports of Chinese nationals infected with Covid by Sunday: IEDCR
  • 20 Covid cases reported in 24 hours
  • Right info most cost-effective for pandemic management

Features

TBS Illustration

From graphic eyes to glass skin: 5 viral beauty trends of 2023

10h | Mode
Photo: Courtesy

Stride: Embracing affordable, inclusive, and heritage-inspired fashion

14h | Mode
Seba Prokashoni after QaziDa

Seba Prokashoni after QaziDa

17h | Panorama
Illustration: TBS

How to retain brains in the country

16h | Panorama

More Videos from TBS

Imran fears re-arrest

Imran fears re-arrest

6h | TBS World
Zlatan Ibrahimovic retires from football

Zlatan Ibrahimovic retires from football

8h | TBS SPORTS
Controversial referee Lahoz departs after receiving a guard of honour

Controversial referee Lahoz departs after receiving a guard of honour

8h | TBS SPORTS
What will happen if Payra thermal power plant is closed?

What will happen if Payra thermal power plant is closed?

8h | TBS Stories

Most Read

1
bKash denied permission to pay $4.10 lakh for Argentina football partnership
Banking

bKash denied permission to pay $4.10 lakh for Argentina football partnership

2
Photo: Noor-A-Alam/TBS
Splash

The Night Dhaka did NOT vibe with Anuv Jain

3
Boeing offers Biman its latest 787-10 Dreamliner
Bangladesh

Boeing offers Biman its latest 787-10 Dreamliner

4
Country's first floating solar power plant connected to national grid
Energy

Country's first floating solar power plant connected to national grid

5
Photo: TBS
Environment

Green space in Dhaka North declines 66% in 3 decades: Study

6
Photo: TBS
Energy

2nd unit of Payra power plant to shut down over coal shortage

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]