The country's maiden Dhaka-Chattogram oil-carrying pipeline remains idle and is awaiting commissioning despite completion of its construction work, sources said.
Privately-owned tank lorry operators who have been transporting petroleum products over the years in the absence of any operational pipeline, continues to make profits from the delay.
Sources said the state-run Bangladesh Petroleum Corporation (BPC) was all set to initiate transporting diesel from the port city of Chattogram to Narayanganj depots through the pipeline from early May.
However, pre-commissioning work is yet to be completed, BPC Chairman Md Amin Ul Ahsan told The Financial Express on Tuesday. The pipeline is expected to save around Tk 2.30 billion annually in fuel transportation costs, he said.
A three-layer extruded polyethylene coating will safeguard the pipeline from leaks. The pipeline is also expected to significantly cut oil delivery time to end-users, avoiding traffic congestion, accidents, unforeseen bottlenecks, natural disasters or political unrest.
Due to the absence of inter-regional pipelines, Bangladesh has long been dependent on coastal tankers, railway wagons, and tank lorries to carry petroleum products from Chattogram depots to end users after importing them from global suppliers. Small barges, mostly owned by the private sector, also carry such products on various river routes.
From Godnail and Fatullah in Narayanganj, tankers usually transport oil through waterways to depots in the country's northern areas, including Baghabari (Pabna), Chilmari (Kurigram), and Sachna Bazar (Sunamganj). Around 200 tankers are used to transport nearly 90 per cent of oil via waterways.
The BPC has completed the construction of the much-talked-about pipeline at a cost of around Tk 36.98 billion to check fuel pilferage, as well as ensure safe and quick transportation of petroleum products to end-users. The pipeline has the capacity to carry 2.62 million tonnes of refined petroleum products annually from the port city for 25 years.
Initially, it will carry diesel from Chattogram, but later it will transport petrol and octane too. The underground pipeline will carry refined petroleum products from the port city's Patenga to Godnail oil depots in Narayanganj and then to Fatullah.
According to documents, the pipeline project was approved in October 2018 with a plan to complete it by December 2020 at an estimated cost of Tk 28.62 billion. But the construction work began in 2020, and the project deadline was extended until December 2022 initially and later to December 2024. The cost eventually rose by 29.21 per cent to Tk 36.98 billion.
The 24 Engineer Construction Brigade of the Bangladesh Army implemented the project funded by BPC. The Covid-19 pandemic and the Russia-Ukraine war contributed to delay and cost escalation of the project.
According to the BPC, the country's annual petroleum product demand is around 6.70 million mt, including 1.30 million mt of crude oil. About 40 per cent of the total petroleum products is consumed in Dhaka division alone.
Sources estimate that the pipeline project will generate about Tk 3.26 billion annually. Of this, around Tk 900 million will be spent on operation, maintenance, fuel, electricity bills, and land rent.
Azizjst@yahoo.com
