TK Group’s Super Petrochemical PLC built unapproved refinery, evaded huge duties
A major controversy has emerged within Bangladesh's energy sector following revelations that TK Group’s concern, Super Petrochemical PLC, has constructed a massive crude distillation unit (CDU) and oil refinery in Chattogram without obtaining required government licenses or regulatory approvals.
According to investigative findings and government documents, the unauthorized plant—touted as having a daily processing capacity of 35,000 barrels—was built while evading mandatory administrative clearances and bypassing customs duties amounting to hundreds of crores of taka on imported machinery.
A petroleum refinery requires upwards of 32 distinct regulatory approvals, including clearance from the Bangladesh Petroleum Corporation (BPC), Bangladesh Bank, the Department of Environment (EIA certification), the Fire Service and Civil Defence, the Explosives Directorate, the Department of Inspection for Factories and Establishments (DIFE), and bonded warehouse licenses from the National Board of Revenue (NBR).
Despite lacking these foundational authorizations—let alone a commercial refining license—Super Petrochemical PLC has pushed forward with construction and recently petitioned BPC on October 27, 2026, seeking permission to import 1.2 million metric tons of crude oil (400,000 tons of light crude and 800,000 tons of heavy crude) for the upcoming 2027 calendar year.
Energy sector experts have raised serious concerns regarding the clandestine importation of heavy industrial machinery without oversight from customs or energy regulators, warning that potential misdeclaration of cargo could conceal widespread duty evasion and introduce severe security and environmental vulnerabilities.
Discrepancies have also been uncovered in official correspondence submitted by the company. While an October application to BPC requested authorization to import light and heavy crude to supply refined products like petrol, diesel, and furnace oil, a separate letter sent to the Ministry of Power, Energy and Mineral Resources in July indicated plans to refine 2 million tons annually of specific international grades, such as Saudi Arabian Light Crude or UAE’s Murban Crude. Furthermore, experts noted that the company has interchangeably used the terms "condensate" and "light crude"—two distinct hydrocarbon products with different origins and technical specifications—to maneuver through administrative approvals.
The development has sparked deep concern among energy analysts, particularly as the state-run Eastern Refinery Limited (ERL) works on expanding its capacity to secure national fuel sovereignty.
Energy expert and Consumers Association of Bangladesh (CAB) energy adviser Dr. M. Shamsul Alam criticized the unapproved initiative, warning that permitting private, unauthorized refineries to operate outside national energy policy threatens Bangladesh's critical infrastructure and energy security.
When contacted, BPC Chairman Dr. Md. Rafiqul Islam said, proposal submitted by Super Petrochemical is currently under review, noting that the regulatory body must thoroughly examine existing legal frameworks, policy guidelines, and the institutional legality of the plant’s operations. Meanwhile, neither managing director Mohammad Mostafa Haider nor CEO Pranab Kumar Saha of Super Petrochemical could be reached for comment.
