Being the first company in the private sector, SOSCL imports Heavy Fuel Oil (HFO), as a trader, and supply to different power plants for their generation of electricity for the national grid. It imports the HFO from Summit Asia Pacific Pte. Ltd., Singapore (SAPPL) which procures the HFO, fixes the ocean-going vessels and exports the same to SOSCL under confirmed Letters of Credit.
Presently SOSCL supplies HFO to the following 8 power plants in the private sector under separate long-term Fuel Supply Agreements (FSA):
- Summit Narayanganj Power Limited – 103 MW
- PowerPac Mutiara Keraniganj Power Plant Ltd. – 100 MW
- Summit Barisal Power Limited – 120 MW
- Summit Narayanganj Power Unit II Limited – 62 MW
- CLC Power Co. Ltd. – 108 MW
- Summit Gazipur II Power Limited – 307 MW
- Ace Alliance Power Limited – 156 MW
- PowerPac Mutiara Jamalpur Power Plant Ltd. – 95 MW
Annual fuel requirements of the above 8 power plants are +/-900,000 MT.
SOSCL’s obligation to the mentioned power plants, under the FSA, is to import, store and transport the entire requirement of HSFO at the respective power plant sites during the term of the FSA.
Since inception to import and supply fuel to power plants in October, 2013, SOSCL imported HFO (and supplied to power plants) the following year-wise quantity:
Year 2013 : 38,000 MT (in 2 months)
Year 2014 : 148, 500 MT
Year 2015 : 165,000 MT
Year 2016 : 410,700 MT
Year 2017 : 429,000 MT
Year 2018 : 579,500 MT
The yearly requirement increased sharply due to start of commercial operation of Summit Gazipur II (300 MW) and Ace Alliance Power (150) MW during May/June of 2018. SOSCL is also commencing supply of HFO to PowerPac Jamalpur (95 MW) in September, 2018.
With a fleet of 22 inland oil tankers (ranging from 500 MT to 5000 MT) having aggregate carrying capacity 30,000 MT (6 vessels are owned and 16 vessels are leased), SOSCL transports HFO from the Storage Terminal at Chittagong to respective plant sites of the above mentioned power plants. In addition, under Fuel Transportation Agreements, SOSCL transports fuel to 3 plants of Khulna Power Co. Ltd. in consideration of freight as per BPC scale.
HFO Storage Tank Terminal
SOSCL owns and operates 3 HFO tank terminals of 50,000 MT capacity at Narayangonj, Barisal and Gazipur as under:
1) Narayanganj : 5 tanks of 22,000 MT capacity at Madangonj on the bank of Sitalakkhya river on 2.02 acres of land owned by the Company operating since February, 2011;
2) Barisal : 2 tanks of 8,000 MT capacity (3,500 MT each) at Char Dopdopia on the bank of river Kirtonkhola on 1.66 acres of own land at Barisal operating since February, 2016.
3) Gazipur : 4 tanks of 5,000 MT each with a total capacity of 20,000 MT at Kodda, Gazipur on 2.54 acres of land on the bank of river Turag which commenced operation in May, 2018.
The above terminals are rented out to the respective power plants.
50,000 MT storage capacity at Chattagram
It also operates another Terminal of Omera Fuels Ltd. (formerly Mobil Jamuna Fuels Ltd.) at Patenga, Chittagong with 50,000 MT capacity which has been taken under long-term Lease Agreement. All the terminals are used for providing intermediate HFO storage facility of different power plants (on a monthly rental @ BPC scale) during the period from receiving from the mother-vessels up to delivery to the respective power plants.
Therefore SOSCL has now total storage facility of 100,000 MT capacity.