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Bangladesh's maiden oil-carrying pipeline is all set to transport diesel from the port city of Chattogram to Narayanganj depots from next week as its pre-commissioning has already kicked off, said officials.
"After completing the project work, we are now carrying out pre-commissioning of the pipeline," state-run Bangladesh Petroleum Corporation (BPC) Chairman Md Amin Ul Ahsan told The Financial Express Sunday.
Formal commissioning and commercial operation of the 246-kilometre, environment-friendly pipeline will be initiated within the next couple of weeks, he said.
"We are eyeing for commissioning the pipeline on May 13," said Ahsan.
He expects the power, energy and mineral resources adviser, Muhammad Fouzul Kabir Khan, will inaugurate the operations of the pipeline, which is a milestone for smooth transportation of the country's oil products.
The pipeline is expected to save fuel transportation costs worth around Tk 2.36 billion annually, said Ahsan.
A three-layer extruded polyethylene coating will safeguard the pipeline from leaks.
The pipeline is expected to significantly cut oil delivery time to end users, as well as avoid traffic congestion, accidents, and other unforeseen bottlenecks during the transportation of oil, including natural disasters and political unrest.
Due to the absence of inter-regional pipelines, Bangladesh has long been dependent on coastal tankers, railway wagons, and tank lorries to carry petroleum products from Chattogram depots to end users after importing them from global suppliers.
Small barges, mostly owned by the private sector, also carry such products on various river routes.
From Godnail and Fatullah in Narayanganj, tankers usually transport oil through waterways to depots in the country's northern areas, including Baghabari (Pabna), Chilmari (Kurigram), and Sachna Bazar (Sunamganj).
Some 200 tankers are used to transport nearly 90 per cent of oil via waterways.
The country's national oil company - BPC - has completed the construction of the much-talked-about pipeline at a cost of around Tk 36.98 billion to check fuel pilferage, as well as ensure safe and quick transportation of petroleum products to end users.
The pipeline has the capacity to carry 5.4 million tonnes of refined petroleum products annually from the port city for 25 years.
But as Dhaka and its surrounding areas require only 2.7 million tonnes of fuel annually, the pipeline will run at half of its capacity in the initial years.
Once the demand for petroleum in the capital and adjacent areas rises, the pipeline will be able to carry an increased volume of fuel accordingly, said insiders.
Initially, it will carry diesel from Chattogram. But later, it will transport petrol and octane too.
The underground pipeline will carry refined petroleum products from the port city's Patenga area to Godnail oil depots in Naryanganj and then to Fatullah on the outskirts of the capital.
According to documents, the pipeline project was approved in October 2018 with a plan to complete it by December 2020 at an estimated cost of Tk 28.62 billion.
But work began in 2020, and the project deadline was extended till December 2022 initially and then till December 2024.
The cost also escalated by 29.21 per cent to Tk 36.98 billion.
The 24 Engineer Construction Brigade of the Bangladesh Army implemented the project funded by BPC.
The 2019-20 Covid-19 pandemic and the Russia-Ukraine war delayed the project and also escalated costs, said sources.
According to BPC, the country's annual petroleum product demand is around 6.70 million mt, including 1.30 million mt of crude oil.
About 40 per cent of the total petroleum products is consumed in the Dhaka division alone.
Sources said the pipeline project will generate Tk 3.26 billion annually. Of this, around Tk 900 million will be spent on operation, maintenance, fuel, electricity bills, and land rent.
Azizjst@yahoo.com