Lub-rref (Bangladesh) has signed a deal with Western Marine Services to set up a tank terminal of 1 lakh tonne capacity along with a berth operating jetty across the Karnaphuli river in Chittagong.

The terminal will be treated as an independent storage terminal where customers can store and transship several types of petroleum oils, fuels and chemicals, Western Marine said in a statement yesterday.

In this regard, Abu Md Fazle Rashid, managing director of Western Marine Services, signed a deal with Mohammed Yousuf, managing director of Lub-rref (Bangladesh), at a programme at Radisson Blu Chittagong Bay View on April 12.

The tank terminal and jetty will be constructed as per API-650 code and state-of-the-art green and safe technology will be adopted in the operation, Western Marine said in the statement.

The jetty will be capable of berthing 10,000-15,000 tonnes capacity marine vessels having both land and river connectivity for storage, loading and unloading of petroleum and chemical products.

Yousuf of Lub-rref (Bangladesh) hoped the project will optimize the utilisation of river side land and further enhance the country's fuel and oil storage capacity.

He said the project will create a balance between supply and demand for fuel and oil trade and save substantial foreign exchange.