Malaysia may supply up to 100,000 tonnes of crude oil to Bangladesh, offering the quickest route to avert a shutdown at state-owned Eastern Refinery Limited (ERL) amid a deepening supply crisis.
Government and industry sources said Kuala Lumpur has responded positively to Dhaka’s request, with shipments likely to reach Chattogram faster than Middle Eastern cargoes as Iran-Israel tensions disrupt key routes.
A government-to-government deal is under negotiation and could be finalised soon, with delivery possible within 15 days, according to ERL sources.
The cargo would travel via the Strait of Malacca and the Bay of Bengal.
“Securing this supply is our top priority,” said ERL General Manager Tajul Islam.
“The shorter route makes Malaysian crude particularly attractive and could ease immediate shutdown concerns,” he added.
Officials said Malaysian crude remains the fastest option to stabilise ERL operations.
With the current stock, ERL’s crude stock may run out by 12 or 13 April, raising the risk of a temporary halt.
The refinery processes around 1.5 million tonnes annually and meets 20-25 per cent of national demand.
The last shipment arrived on 18 February aboard Omera Galaxy from the United Arab Emirates, with no fresh supply since.
Tajul Islam said the crisis is driven by supply disruptions rather than routine maintenance cycles.
Parallel shipments underway
Officials said another 100,000 tonnes of crude remain stranded aboard tanker NORDIC POLLUX at Saudi Arabia’s Ras Tanura Port, awaiting clearance through the Strait of Hormuz.
Bangladesh has engaged Iran to secure passage, with Bangladesh Shipping Corporation (BSC) expecting approval within days.
Once cleared, the vessel could reach Chattogram in 11 to 15 days, potentially by mid-April.
BSC Managing Director Commodore Mahmudul Malek said diplomatic efforts are ongoing and expressed optimism over approval.
A separate 100,000-tonne shipment is being loaded at Yanbu Port on Saudi Arabia’s Red Sea coast, bypassing Hormuz.
Scheduled for 20 April, it is expected to arrive in early May.
Following Iran’s blockade of the Strait of Hormuz, fuel shortages have begun to surface, with long queues forming at petrol stations and supplies of petrol and octane tightening.
The government is accelerating imports, securing alternative cargoes, and using diplomatic channels to clear delayed shipments.
Bangladesh imports between 1.2 and 1.5 million tonnes of crude annually, more than half from Saudi Arabia.
The Bangladesh Petroleum Corporation (BPC) plans to import up to 200,000 tonnes in May from Saudi Arabia.
Officials said the Malaysian cargo could provide critical relief to stabilise supply and keep the refinery operational as geopolitical risks intensify.
