The installation of the 125-kilometre India-Bangladesh Friendship Pipeline will begin next month in the Bangladesh side in Nilphamari.
Md Abu Bakar Siddique, the newly appointed chairman of Bangladesh Petroleum Corporation (BPC), informed this it at a view-exchange meeting with the Forum for Energy Reporters Bangladesh (FERB) at BPC’s office in the city on Thursday.“All the issues with land acquisition have been solved and we are expecting to start pipeline installation work any time next month,” he said.
He said necessary pipes and equipment have started to arrive to start the pipeline installation work.
The total length of the pipeline will be 130 kilometres--- 125 kilometres inside Bangladesh and 5.0 inside India.
Currently, diesel is being brought to Parbatipur with rail wagons from Doulatpur oil depot in Khulna.
The fuel is brought to Doulatpur through coastal tanks from Chattogram after it is imported from the international market through cargoes.
BPC will purchase this diesel from Numaligarh Refinery Limited of Assam for 15 years.The fuel is being bought at a premium rate of $5.50 per barrel to Mean of Platts Arab Gulf (MoPAG) diesel assessment on a cost and freight (CFR) basis. Annually, the pipeline is planned to carry 250,000 tonnes of diesel to Bangladesh in the first three years.
It will be gradually increased to 400,000 tonnes per year during the next five years.
The government might continue to import diesel beyond the already agreed 15 years based on a mutual decision, the BPC chairman added. The pipeline will go through Panchagarh, Nilphamari and Dinajpur border belt to reach Parbatipur oil storage.
Abu Bakar Siddique said the ongoing projects of BPC are progressing smoothly despite COVID-19 pandemic.
“Our single point mooring project has also made 40 per cent progress while the Dhaka-Chattogram pipeline project is also on track,” he added.