BPC, Navy ink deal to build first jet fuel supply pipeline
It'll cost Tk 1.83b, end by Nov 2018
FE Report | Thursday, 9 November 2017
The state-run Bangladesh Petroleum Corporation (BPC) signed a deal with Bangladesh Navy on Wednesday to build the country's first oil-carrying pipeline by November 2018 at a cost of Tk 1.83 billion.
The proposed 16-kilometre (km) underground pipeline with eight-inch diameter will carry jet fuel from Pitloganj of Narayanganj to Kurmitola Aviation Depot (KAD) of Hazrat Shahjalal International Airport (HSIA), a senior BPC official said.
Bangladesh Navy will build the pipeline as the engineering, procurement and construction (EPC) contractor.
Energy secretary Nazim Uddin Chowdhury, BPC chairman Abu Hena Md Rahmatul Munim, Petrobangla chairman Abul Mansur Md Faizullah and other senior officials of Bangladesh Navy and BPC were present during the deal signing ceremony at BPC's liaison office in the capital.
Bangladesh's annual jet fuel demand is around 400,000 tonnes, and 75 per cent of the fuel is supplied to different local and international airlines in HSIA.
BPC usually gets jet fuel through importing it from international suppliers and as an output from its wholly-owned subsidiary Eastern Refinery Ltd (ERL), which is the country's sole refinery.
Currently imported and locally refined jet fuel is stored in the main storage infrastructure in Chittagong port-city, from where the fuel is transported through dedicated coastal tankers to Godnail tank terminal in Narayanganj.
Jet fuel is then transferred to KAD, located some 40 km north, through some 140-150 tank-lorries every day. The fuel later reaches aircrafts in HSIA through hydrant system, a special pipeline, said the BPC officials.
Carrying fuel through tank-lorries on the city's busy streets is risky and sometimes become uncertain due to unforeseen political programmes and natural calamities, he also said.
After construction of the pipeline, BPC would be able to avoid city streets to carry jet fuel to HSIA.
Three jet fuel storage tanks having the capacity of 3,000 tonne each along with pumping facilities, jetty and generator office would be built at the proposed depot near Kanchon Bridge at Pitloganj, from where the fuel would enter into the proposed pipeline.
Modern telecommunication system and leak detection system would be installed there for smooth operation of the jet-fuel carrying pipeline and ensuring security. The total estimated project cost is Tk 2.28 billion, said the officials.
In September, the Cabinet Committee on Government Purchase approved issuing notification of award (NOA) to Bangladesh Navy to build the jet fuel-carrying pipeline.
Officials said BPC is in discussion with Bangladesh Army to build a 237-km pipeline to carry diesel from the port-city to Dhaka.