Planning Commission refuses to approve ERL's pipeline project
Sunday, 3 January 2010
FHM Humayan Kabir
The planning commission has refused to approve Tk 10.81 billion deep-sea pipeline project of Eastern Refinery Ltd (ERL) for transporting oil from tankers in deep sea to shore as no feasibility study has been under taken before submitting the mega project proposal, officials said Wednesday.
Planning commission officials said they had asked the state-owned company to submit documents and papers on post-project implications on marine vessel movements and impact on temperature fluctuation in the Bay.
ERL under the Bangladesh Petroleum Corporation (BPC) has taken the scheme to set up a "floating platform" in deep sea and a connecting pipeline to despatch imported crude and refined petroleum from tankers to shore and sent it for approval of the planning commission.
The proposed floating platform titled "single point mooring (SPM)" was proposed to be set up in south-west of Kutubdia island in the Bay of Bengal, about 70-kilometre south from the Chittagong port.
In addition, a 70-kilometre-long pipeline from the proposed SPM to ERL in Chittagong, would also be laid on the sea-bed.
A planning commission official said the project evaluation committee has recently refused to approve the proposal as it did not submit the feasibility report on whether fuel in the proposed pipeline would freeze due to temperature fluctuation under sea water and whether other marine vessels would face any obstruction during movement.
"We have asked to restructure the project proposal incorporating such technical aspects. Besides, the refinery will have to submit a no-objection certificate of the Inland Water Transport Authority on the vessel movement," he told the FE.
A senior BPC official said: "We've visited and obtained knowledge on such projects abroad. Based on the experiences the scheme has been taken in the country."
"As it is a new types of project in the country, we have proceeded based on the experience from our visit abroad," he said adding, "we have taken the project considering its urgency in the country."
The Jeddah-based lender Islamic Development Bank (IDB) has assured to provide major portion of the fund out of Tk 10.81 billion cost as the government will provide only Tk1.81 billion.
A BPC official said: "The proposed pipeline from deep sea will save both time and money of the government as it will help to unload crude and refined petroleum from the vessels in the deep sea without berthing in the port.
The planning commission has refused to approve Tk 10.81 billion deep-sea pipeline project of Eastern Refinery Ltd (ERL) for transporting oil from tankers in deep sea to shore as no feasibility study has been under taken before submitting the mega project proposal, officials said Wednesday.
Planning commission officials said they had asked the state-owned company to submit documents and papers on post-project implications on marine vessel movements and impact on temperature fluctuation in the Bay.
ERL under the Bangladesh Petroleum Corporation (BPC) has taken the scheme to set up a "floating platform" in deep sea and a connecting pipeline to despatch imported crude and refined petroleum from tankers to shore and sent it for approval of the planning commission.
The proposed floating platform titled "single point mooring (SPM)" was proposed to be set up in south-west of Kutubdia island in the Bay of Bengal, about 70-kilometre south from the Chittagong port.
In addition, a 70-kilometre-long pipeline from the proposed SPM to ERL in Chittagong, would also be laid on the sea-bed.
A planning commission official said the project evaluation committee has recently refused to approve the proposal as it did not submit the feasibility report on whether fuel in the proposed pipeline would freeze due to temperature fluctuation under sea water and whether other marine vessels would face any obstruction during movement.
"We have asked to restructure the project proposal incorporating such technical aspects. Besides, the refinery will have to submit a no-objection certificate of the Inland Water Transport Authority on the vessel movement," he told the FE.
A senior BPC official said: "We've visited and obtained knowledge on such projects abroad. Based on the experiences the scheme has been taken in the country."
"As it is a new types of project in the country, we have proceeded based on the experience from our visit abroad," he said adding, "we have taken the project considering its urgency in the country."
The Jeddah-based lender Islamic Development Bank (IDB) has assured to provide major portion of the fund out of Tk 10.81 billion cost as the government will provide only Tk1.81 billion.
A BPC official said: "The proposed pipeline from deep sea will save both time and money of the government as it will help to unload crude and refined petroleum from the vessels in the deep sea without berthing in the port.