Expediting operation of oil pipeline

Chattogram-Dhaka oil pipeline project has been encountering delays in multiple forms. First, its launching was delayed following its approval by the Executive Committee of the National Economic Council (ECNEC) in October 2018. Thus its original completion deadline by December 2020 was missed. The deadline was extended twice first, to December 2022 and then to December 2024. Consequently, the original project cost has soared from Tk28.61 billion to Tk 36.99 billion. On project completion, the operation, that is, transportation of the petroleum fuel through the pipeline was scheduled to begin early this month.

But it has not yet started due to non-completion of some pre-commissioning work. Whatever the nature of the pre-commissioning formalities may be, it must not cause inordinate delay to transportation of the fuel oil through the 237.71- kilometre pipeline from Padma oil installations in Patenga of Chattogram to Narayanganj's Godanail tank terminal. The more the delay in actual commissioning of the operational part of the project is the more the transportation of fuel oil by private tanker lorries and coastal tankers. The nexus pilfering oil during transportation will also share the loot. It is an entire chain of vested interests from transportation points to political high-ups that was engaged in stealing the state's precious fuel oils during the autocracy. The scale of operation gives some measure of profit with 200 tankers reportedly deployed to carry 90 per cent of oil by waterways.

Now that the autocracy has gone, what is then standing on the way of making the oil pipeline functional? If it is due to the usual bureaucratic tardiness, indecision or laxity on the part of BPC's administration, or, say, appointment of an operating company to run the pipeline, the delay should not be inordinate. That would call for bringing those responsible for the sloppiness in the administration to book. The main objective of installing the pipeline was to save about Tk2.30 billion annually in transportation cost. That objective is being defeated.

More than the money in the form of transportation cost, the time saved is the most critical part of the project. Once the pipeline begins to carry 2.62 million metric tonnes of petroleum products from Chittagong port to the capital city annually without all the hassles, risks, costs and lengthy time, the productivity of the national economic engine oil fires will increase manifold. It is not just the industries in the urban areas that the piped oil promises to serve, the 2.7 million tonnes of High Speed Diesel (HSD), the crucial fuel for agriculture in the northern districts to be transported through the pipeline would also help ensure the country's food security better. Notably, from Godanail and Fatullah in Narayanganj, tankers are used to carry the oil along the waterways to the depots in the northern districts such as Baghabari in Pabna, Chilmari in Kurigram and Sachnabazar of Sunamganj in the northeast. Obviously, after commissioning, the northern agricultural districts would also benefit greatly. In sum, every hour lost to commissioning delay of the pipeline would amount to huge loss in economic terms. This is the last thing expected of the current interim government.