Home ›› 02 Sep 2022 ›› Nation
The work on the India-Bangladesh Friendship Pipeline Project (IBFPP), a project that will enable the two countries to integrate their energy needs, is progressing well and will likely be completed by the end of 2022 to supply fuel oil uninterruptedly to 16 northern districts, according to project officials.
The 131.57-kilometre-long pipeline project deal was signed in 2018 and is being implemented at a cost of Tk 520 crore. Of the amount, the Indian government is paying Tk 303 crore and the rest is being funded by the Bangladesh government. Of the total length of the pipeline, 126.50km is inside Bangladesh while the remaining 5.07km is in India.
Earlier, Bangladesh Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi jointly inaugurated the construction of the Indo-Bangla oil pipeline via videoconferencing on September 18, 2018.
Tipu Sultan, an official of the IBFPP, said the project work was delayed initially for six months due to the Covid-19 outbreak. The installation of pipeline work began in December 2020.
About 90 per cent of the construction of the pipeline has so far been completed. Five sectionalising valves (SV) stations’ development work has also been completed, which will be used to isolate sections of the pipeline during emergencies, such as leakage and other problems.
Besides, Bangladesh Petroleum Corporation (BPC) is setting up a buffer storage tank in the Parbatipur upazila oil depot, adding 29,000 tonnes to the depot’s existing 15,000-tonne storage capacity.
The pipeline will ensure a smooth supply of diesel to all 16 northern districts under Rangpur and Rajshahi divisions, facilitating quick transportation at a minimum cost. The project work is progressing fast, officials said.
According to BPC sources, imported diesel is transported to BPC oil depots in Parbatipur, Dinajpur, and Baghabari of Sirajganj through railway wagons and trawlers from the Chattogram and Mongla ports. It costs about $8 to transport each barrel of fuel from the port city which is also a time-consuming matter.
The transportation cost would decrease to around $5.5 per barrel and a significant portion of time will be saved in the process. The cross-border pipeline fuel supply would reach the Parbatipur depot within an hour instead of at least 48 hours needed at present.
The activation of the pipeline will help BPC significantly reduce its system loss for the uninterrupted, economical, and fast supply system.
Managing Director of Meghna Petroleum Ltd, Md Masudur Rahman, said the pipeline project would enable the two countries to integrate their energy needs. More than 90 per cent of the project work has been completed and the rest of the work is going on fast. The project would likely complete by the end of the year, and it will start functioning soon after the completion.
The country can import around one million tonnes of diesel from India through the pipeline each year. Bangladesh will purchase around 2.5 lakh tonnes of diesel initially, and the import volume will be increased gradually to four to five lakh tonnes in the following years.
Under the agreement, Bangladesh will import diesel for 15 years from the day of commissioning the pipeline and the time could be extended based on the consent of both countries.
The country also recently started importing 2,200 tonnes of diesel every month from Numaligarh Refinery Limited through the West Bengal Railway. The BPC transports the fuel through Bangladesh Railway to the Parbatipur oil depot.
A dealer of Meghna Petroleum Ltd near the railway station in the city, Sirajul Islam Siru, said it takes more than three days for a fuel-laden railway wagon to reach Rangpur from Chattogram. “The pipeline connection will ensure uninterrupted fuel supply to the northern districts, cutting transportation costs and time consumption.”
FBCCI Senior Vice President Mostafa Azad Chowdhury Babu said the two countries have much potential to gain from their geographical contexts.
“Connectivity is an important part of boosting trade and commerce. The pipeline has a unique and significant value that enables us to integrate our energy requirements at cheaper rates.”
According to project officials, the IBFPP will supply fuel from Assam-based Numaligarh Refinery Limited through the Siliguri Marketing Terminal to Parbatipur in Dinajpur.