Dhaka-Chattogram oil pipeline is slated to commence trial operations in February and begin commercial service by March, according to Amin Ul Ahsan, chairman of the Bangladesh Petroleum Corporation (BPC).
The pipeline is expected to address multiple challenges in fuel transportation, reduce wastage, and ensure safe delivery, marking a significant milestone for the country’s energy infrastructure.
Speaking to a news outlet, the BPC Chairman emphasised the hurdles faced in transporting oil from Chattogram to Dhaka.
He noted that the pipeline would not only ensure the secure transportation of oil but also eliminate costs and losses associated with lighterage operations.
In response to a query, Amin Ul Ahsan stated that the pipeline would primarily transport diesel, which accounts for 70% of the country's fuel consumption, thereby meeting a substantial portion of demand.
Petrol and octane would continue to be transported via traditional methods such as railway wagons and riverine tankers.
Highlighting the difficulties in using railways for oil transport, he pointed out issues like the unavailability of locomotives, requiring interventions as high-level as discussions with the Railway Secretary.
The pipeline project, initiated with a preliminary study in 2017, had an original completion deadline of December 2020.
However, work began only in 2020, with the deadline subsequently extended twice—first to December 2022 and then to December 2023.
An additional six months were granted without increasing the budget, and the project cost has risen from an estimated Tk2,861 crore to nearly Tk3,699 crore.
Implemented by the 24 Engineer Construction Brigade of the Bangladesh Army, the project covers 237 kilometres between Dhaka and Chattogram, 59 kilometres between Cumilla and Chandpur, and 8.5 kilometres from Fatullah to the Godnail depot.
BPC estimates the pipeline will save Tk65 crore annually in transportation costs while eliminating various operational complexities.
The pipeline also aims to curb fuel theft and syndicates surrounding lighterage operations, particularly at the Godnail depot, which has been plagued by theft disguised as wastage during unloading.
Despite resistance from lighterage vessel owners and theft syndicates, the pipeline is now poised for completion.
Preparations for irrigation season are underway, with northern distributors being engaged to ensure uninterrupted fuel supply.
The northern region, known as the nation’s granary, previously faced logistical challenges in fuel transportation, relying on lighterage ships to Baghabari and subsequent transport via tank lorries or railways.
The new India-Bangladesh Friendship Pipeline has brought significant improvements, ensuring cost-effective and timely fuel delivery to 16 northern districts.
Constructed at a cost of Tk3,623 crore, this 131.50-kilometre pipeline from Numaligarh in India to Parbatipur depot in Bangladesh was completed ahead of its June 2023 deadline and is now operational.
Bangladesh’s annual demand for fuel currently stands at approximately 73 lakh metric tonnes, projected to rise to 93 lakh tonnes by 2030, with diesel constituting 67.19% of the demand.
As Bangladesh does not produce fuel, the majority is imported, with lighterage vessels being relied upon due to navigational challenges at major river ports.
The pipeline is expected to reduce this dependence, streamlining the country's energy supply chain.
