Bangladesh will import gasoil with 0.05% sulfur content, instead of 0.2-0.25%, from January 2015, in line with instructions from the Ministry of Environment and Forest, Bangladesh Petroleum Corporation Chairman Eunusur Rahman said Thursday.
State-owned BPC had already sent letters to gasoil suppliers on the lower sulfur specifications, he said, adding that no responses had been received from the suppliers as yet.
BPC is Bangladesh's sole importer of gasoil and has term deals with Kuwait Petroleum Corporation; Petco, the trading arm of Malaysia's Petronas; Emirates National Oil Company, or ENOC; PetroChina; Vietnam's Petrolimex; and Unipec Singapore.
It currently imports around one-third of its total gasoil requirement from KPC, according a BPC official.
Importing the lower sulfur gasoil might lead to higher import costs, Rahman said.
Apart from gasoil, BPC imports 180 CST high sulfur fuel oil, A-1 jet fuel, 95 RON gasoline and superior kerosene.
Bangladesh is the latest country to join a slew of Asia Pacific and Middle Eastern countries in adopting cleaner fuels as part of a global push.
In Asia, Sri Lanka, which was previously importing 0.25% sulfur gasoil, has progressively switched to 500 ppm sulfur gasoil earlier this year, with the majority of its import volumes now of that grade.
In North Asia, China is planning to move from the current National Phase 3 standard, which limits sulfur to a maximum of 350 ppm, to National Phase 5 standard, which is comparable to Euro V standard, that caps sulfur at 10 ppm, by 2017.
In the Middle East, the United Arab Emirates in July, switched its motor fuel specifications from 500 ppm sulfur gasoil to 10 ppm sulfur.
Saudi Arabia is expected to make a similar switch around 2016-2017.
Jordan Petroleum Refinery which was previously importing 0.5% sulfur gasoil, recently switched to importing 500 ppm sulfur.
While in East Africa, five countries -- Uganda, Tanzania, Kenya, Rwanda and Burundi -- have agreed to lower their sulfur content in motor fuels to 50 ppm for diesel and 150 ppm for gasoline by January 1, as the region plays its part in reducing emissions.
