Oil to Flow Dhaka via Pipeline, Saving Tk 2.36 Billion

The construction of a 250-kilometer pipeline has already been completed. If all goes as planned, fuel oil will start flowing from Chattogram to Dhaka through this pipeline by March next year. This will result in savings of approximately Tk 2.36 billion, marking a significant milestone in Bangladesh's energy transportation system.

According to officials from the Bangladesh Petroleum Corporation (BPC), the implementation of this project will not only reduce fuel transportation costs but also ensure an uninterrupted supply chain. Moreover, it will contribute to reducing environmental pollution.

Currently, fuel oil is transported from Chattogram to Dhaka via river and road. However, this process often faces disruptions for various reasons. Additionally, the cost of transportation through rivers and roads is high, and there are frequent allegations of oil theft. During the dry season, reduced navigability in waterways further complicates transportation.

To address these challenges, a project titled "Transportation of Fuel Oil through Pipeline from Chattogram to Dhaka" was approved in October 2018. However, construction work started in 2020. Initially, the project was scheduled to be completed by December 2022, but the deadline was extended twice with the latest deadline set for December this year.

The project's initial cost was estimated at Tk 28.61 billion, but it was later revised to Tk 36.99 billion. It is being implemented by the 24 Engineer Construction Brigade of the Bangladesh Army.

According to BPC sources, the annual demand for fuel oil in Bangladesh is about 6.5 million tons. In the 2023–24 fiscal year, 6.7 million tons were supplied with diesel accounting for 75% of the total demand.

BPC also mentioned that 40% of the country's total fuel demand is consumed in the Dhaka division. Currently, oil is transported to Dhaka by first shipping it from Patenga in Chattogram to depots in Narayanganj's Godnail and Fatullah via waterways and then by road to Dhaka. Around 150 small and large vessels are used for this transportation every month, costing Tk 2 billion annually.

Once the pipeline becomes operational, the project is expected to generate an annual revenue of Tk 3.26 billion, while expenses for operations, maintenance, fuel, electricity, and land lease will amount to Tk 900 million. This will lead to annual savings of Tk 2.36 billion.

Projections suggest that the project's investment will be recovered within 16 years.

Regarding the project's progress, Md. Aminul Haque, the project director appointed by BPC, said that construction work will be fully completed by December. After commissioning trials, the pipeline will be ready for full-scale fuel transportation.

When asked about the commissioning timeline, Anupam Barua, BPC's Director of Operations and Maintenance stated that commissioning is expected to begin in January, followed by staff recruitment and training. Full-scale fuel transportation is scheduled to start in March.