BD-India pipeline hits a hurdle

The construction of the India-Bangladesh Friendship Product Pipeline (IBFPL) could be hit because of a technical objection raised by H-Energy Pvt Ltd, according to a report published on the www.telegraphindia.com.

The pipeline will be built from Numaligarh Refinery Ltd's marketing terminal in Siliguri to Parbatipur in Bangladesh.

H-Energy Pvt Ltd is a subsidiary of real estate firm Hiranandani Group.

"The customer - Bangladesh Petroleum Corporation (BPC) - for which the dedicated pipeline has been proposed is a marketing and distribution company of petroleum products in Bangladesh.

Hence, the customer (BPC) will resell the products to its customers," H-Energy informed the Petroleum and Natural Gas Regulatory Board (PNGRB).

"Therefore, the proposed pipeline does not fall within the definition of a dedicated pipeline and the application of a dedicated pipeline under the provisions of PNGRB authorisation regulations cannot be considered," it contended.

H-Energy pointed out that rule 19 (2) of the authorisation regulations states that "the entity proposing to lay, build and operate or expand a dedicated pipeline to transport petroleum products to a specific customer and not for resale".

Sources said the regulator would soon come out with its ruling on the issue based on the submission made by H-Energy.

Of the 129.5km long pipeline, only 5.16km would fall in India. The Indian leg of the 1-million-tonne-a-year pipeline will be financed by Assam-based Numaligarh Refinery (NRL), a BPCL subsidiary.

The pipeline is to be financed through India's ongoing development co-operation programme. The total cost is estimated at Rs 360 crore.