CHATTOGRAM, Aug 08: The construction of Bangladesh's first-of-a-kind oil-transportation pipeline has been completed spending Tk 36 billion, and its operation is expected to begin this month, enabling BPC to save time, costs and curb system loss and environmental pollution.
The pre-final commissioning of the pipeline took place in June and Bangladesh Petroleum Corporation (BPC) plans to start transporting oil under its own management.
The entire pipeline is protected by a three-layer extruded polyethylene coating, crossing the beds of 22 rivers and canals, with nine stations along the way and a new fuel depot established in Cumilla's Barura upazila.
According to BPC officials, the pipeline, capable of transporting 3.0 million tonnes of fuel oil annually, will save Tk 1.50 billion in transportation costs per year.
The 24th Engineer Construction Brigade of the Bangladesh Army is overseeing the project's implementation.
BPC sources have confirmed that the implementing organisation will hand over the project to the funding authorities of Padma Oil Company Limited. Padma Oil Company will then transfer it to BPC, who will in turn hand it over to its subsidiary organisation Petroleum Transportation Company Limited (PTC PLC).
The Chattogram-Dhaka oil pipeline was initially planned in 2015 with the goal of completion by 2017.
The executive committee of the National Economic Council (ECNEC) approved the pipeline project with an initial budget of Tk 28.61 billion in October 2018. It was designed to transport 2.7-3.0 million tonnes of fuel annually, with the capacity set to increase to 5.0 million tonnes.
BPC also initiated a feasibility study and enlisted Engineers India Limited as consultants.
However, delays and cost revisions pushed the budget up to Tk 31.72 billion. The project was then revised again, with the total cost finalised at Tk 36.00 billion and the deadline extended to December 2024 by the Ministry of Energy and Mineral Resources.
Annually, the pipeline will also transport over 2.7 million tonnes of diesel (High-Speed Diesel-HSD), a crucial fuel for agricultural work in the northern districts of the country.
A total of 241.28 kilometers of the pipeline has been installed from Guptakhal in Patenga to Godnail in Narayanganj, passing through Feni, Cumilla, Chandpur, and Munshiganj.
BPC imports nearly 1.3 million tonnes of crude oil and 4.2 million tonnes of refined oil.
Dhaka and its adjacent areas consume approximately 1.5 million tonnes of oil annually.
Additionally, different natural gas fields and private fractionation plants supply around 0.30 million MT of petroleum products. Oil tankers usually transport oil from Godnail and Fatullah in Narayanganj through waterways to depots in the country's northern areas, including Baghabari (Pabna), Chilmari (Kurigram), and Chachna Bazar (Sunamganj) in the northeast.
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