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Indo-Bangladesh undergoing oil pipeline


Syed Amar Khan
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Equipment for Indo-Bangla pipeline to arrive from Monday

Work for setting up the 130-km underground pipeline will start by early March

The Bangladesh Petroleum Corporation (BPC) is set to receive pipes and other required equipment to start the Bangladesh-India Friendship Pipeline (BIFP) project from Monday. 

The Meghna Petroleum Ltd (MPL), a BPC company and in-charge of implementing the project, will receive the equipment through Hili land border of Dinajpur. 

Md Tipu Sultan, project director of the BIFP and also deputy general manager of MPL, said, "Numaligarh Refinery Ltd has already sent the equipment, and now we are waiting for custom's approval."

The work for setting up 130-km underground pipeline will start by early March, he added. 

On Tuesday, the Executive Committee of the National Economic Council (ECNEC) approved the project worth Tk306.23 crore. 

Under the project, a 130-km underground petroleum pipeline – 5 km in India and 125 km in Bangladesh – will be built from Numaligarh Refinery Ltd in Siliguri of India to Parbatipur depot under Dinajpur district of Bangladesh. 

The project aims at facilitating fuel transport and supply to the Northern-region of the country with a shorter time and cheaper cost. 

At present, the BPC's fuel supply cost or premier is $6.6 per barrel. It includes $2.2 per barrel import cost from the Middle East to the outer anchorage of Chittagong Sea-Port, and $4.4 to deliver the fuel to the Dinajpur storage tank. 

But the cost will drop down to $5.5 per barrel once the pipeline is completed. The pipeline will have a delivery capacity of one million tonnes of fuel annually. 

Md Sarwar Alam, director (operations and planning) of BPC told The Business Standard that the project will help them supply reliable and uninterrupted fuel to the northern part of the country. 

"We have faced problems in sending the fuel from Chattogram to Dinajpur through roads and railways, especially when political tensions rise. Now we can supply uninterrupted fuel in the region."

Currently, the BPC is importing a small-scale of diesel from India to Parbatipur depot through railways which is around 0.45 million tonnes annually. 

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1 hour ago, Syed Amar Khan said:

At present, the BPC's fuel supply cost or premier is $6.6 per barrel. It includes $2.2 per barrel import cost from the Middle East to the outer anchorage of Chittagong Sea-Port, and $4.4 to deliver the fuel to the Dinajpur storage tank. 

But the cost will drop down to $5.5 per barrel once the pipeline is completed. The pipeline will have a delivery capacity of one million tonnes of fuel annually

It takes only $2.2 per barrel from the Middle East to the outer anchorage of Chittagong Sea-Port but these Indians will be taking $5.5 per barrel to supply it from Siliguri to Parbatipur? Why are we even accepting this? Wouldn't it be better if we would make a pipeline from Chittagong to Parbatipur and continue importing from Middle East? Cost should have been much lower than $5.5 per barrel.

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1 minute ago, Dark Carnage said:

It takes only $2.2 per barrel from the Middle East to the outer anchorage of Chittagong Sea-Port but these Indians will be taking $5.5 per barrel to supply it from Siliguri to Parbatipur? Why are we even accepting this? Wouldn't it be better if we would make a pipeline from Chittagong to Parbatipur and continue importing from Middle East? Cost should have been much lower than $5.5 per barrel.

It costs $6.6 per barrel to supply oil from the Middle East to Dinajpur (the northern most part of Bangladesh). It will cost $5.5 per barrel to import from India. Bangladesh will make a saving of $1.1 per barrel. Why are you complaining? Do you think companies are run like charities? Its a good deal. If you have a better idea you should contact BPC!

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2 minutes ago, Aparajita Banerjee said:

It costs $6.6 per barrel to supply oil from the Middle East to Dinajpur (the northern most part of Bangladesh). It will cost $5.5 per barrel to import from India. Bangladesh will make a saving of $1.1 per barrel. Why are you complaining? Do you think companies are run like charities? Its a good deal.

Did you read the part It takes only $2.2 per barrel from the Middle East to the outer anchorage of Chittagong Sea-Port and $4.4 to deliver the fuel to the Dinajpur storage tank? Now, it takes $4.4 because we transport these oil via road using lorries. But if we make a pipeline via same route, I am sure it will come down to less than $5.5. And Bangladesh should not depend on India for something so sensitive like fuel after what they did with Nepal. Using sea route will give us multiple options but this pipeline gives us only Indian option.

14 minutes ago, Aparajita Banerjee said:

If you have a better idea you should contact BPC!

So I can not say anything in this forum now? If no discussion is encouraged what is the point of this forum?

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1 minute ago, TigerShark said:

BPC can decrease the cost of supplying oil to the northern fegion further by carrying the oil by waterways up river. Navigability will be the main issue there.

They use waterway upto Baghabari depot in Sirajganj. Waterway further north is not navigable.

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