Fuel oil supply from Chattogram to Dhaka through a 250-kilometre underground pipeline began on Saturday, which is expected to cut logistical delays, combat corruption and reduce transport costs.
Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan inaugurated the project at Padma Oil PLC terminal at Guptakhal in Patenga area of Chittagong city.
Mohammad Saiful Islam, Secretary of Energy and Mineral Resources Department, and Major General Md. Hasan-uz-Zaman, Engineer-in-Chief of Bangladesh Army, were present at the event as special guests.
Bangladesh Petroleum Corporation (BPC) Director Dr. AKM Azadur Rahman also addressed the event chaired by BPC Chairman Md. Amin-ul-Ahsan.
While speaking as the chief guest, Energy Adviser Fouzul Kabir Khan said transportation of fuel oil from Chattogram to Dhaka through pipeline is a technological progress in the project.
“Technological progress is the foundation of the modern world. We must remember that we don’t have enough wealth. Our natural gas is now running out. We don’t have significant natural resources except human resources.”
Keeping limited resources in mind, he said, “We have to reduce waste and curb corruption. If we can reduce waste and combat graft, and make technological progress, growth achievement will be possible for a large population."
The adviser further said, "BPC spends Tk 326 crore every year on carrying oil from Chattogram to Dhaka by oil tankers. As the pipeline goes into operation, it will cost Tk 90 crore. The implementation of the project will save about Tk 236 crore more in fuel oil transport.”
It will take only four hours for fuel supply from Ctg to Dhaka. Previously, it took about two days. With the implementation of the project, we will have to reduce dependency on foreign countries and increase our own capacity in the future, he said.
The project for the construction of the second unit of Eastern Refinery is awaiting approval from Planning Commission. It will be implemented very soon, he added.
BPC Chairman Amin ul Hasan said, “The construction work of the 250-kilometre pipeline and other infrastructures including storage tanks was completed in last March. The state-of-the-art pipeline crosses six districts and 20 rivers.”
“The project having the capacity to supply 27 tonnes of fuel oil has been implemented at a cost of Tk 3,700 crore. 24th and 34th Engineering Construction Brigades of Bangladesh Army are implementing the project under the supervision of Padma Oil.”
Petroleum Transmission Company (PTC) PLC, a subsidiary of Bangladesh Petroleum Corporation (BPC), will manage the project to transport fuel oil through the pipeline while 30 percent oil will go to Dhaka region through this pipeline, he said.
Excluding maintenance costs, Tk 236 crore can be saved annually. The time for oil supply has been reduced. Oil tankers used to take at least 24 hours to transport petroleum from the port city to Narayanganj river port. But this pipeline is capable of supplying oil in just four hours.
According to BPC sources, the annual demand for fuel oil in the country is about 6.5 million tonnes. Supplying fuel to 50 depots by 180 oil tankers of three oil marketing companies was a big challenge. It costs BPC about Tk 400 crore annually.
The Executive Committee of the National Economic Council (ECNEC) approved the project worth about Tk 2,861 crore in October 2018. The project was supposed to be completed in December 2020. The deadline was extended later due to land acquisition and the corona situation. It was completed in March this year. The cost increased to Tk 3,653 crore.
Under the project, a 241.28-km underground pipeline of 16 inches in diameter was laid from Chattogram to Godnail in Narayanganj and a 8.290-km pipeline of 10 inches in diameter from Godnail to Fatulla in Narayanganj. A total of 9 stations were built and 286.88 acres of land was acquired.
To facilitate fuel transportation from Chattogram to Dhaka via Feni, Cumilla, Chandpur and Munshiganj, modern and automated depot was built at Mogbari in Barura upazila of Cumilla district. Reservoirs were also set up for Padma and Meghna Petroleum at Siddhirganj in Narayanganj and for Jamuna Oil and Meghna Petroleum at Fatulla.
