Chittagong-Dhaka Oil Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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Chittagong-Dhaka Oil Pipeline is an under construction fuel oil pipeline in Bangladesh.

Location

The pipeline will run from BPC's Chattogram tank terminal at Padma Oil Installations at Patenga to Godnail Tank Terminal in Narayanganj (237.71-km segment )and then to Fatullah in Narayanganj (8.29-km segment).

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Project Details

• Operator: Bangladesh Petroleum Corporation (BPC)
• Parent Company: PETROBANGLA
• Current Capacity:
• Proposed Capacity: 60,000 barrels per day
• Length: 152.86 miles / 246 km
• Cost: US$304 million
• Status: Construction
• Start Year: 2022

Background

In 2015, the Bangladeshi government announced it would construct a 250-km fuel oil pipeline between Chittagong and Dhaka by 2017, aiming to reduce transport cost and stop pilferage of fuel. Up until that time, the country depended on coastal tankers, railway wagons, and tank-lorries to carry both crude and refined oils to end-users after import from global suppliers into Chittagong (Chattogram) depots, as it had no major oil-carrying pipeline. As a result, fuel oil was being stolen at different points along the railway and waterway routes during its supply from Chittagong port and Eastern Refinery Limited to different areas across the country. The state-run Bangladesh Petroleum Corporation (BPC) was chosen to implement the project.

In September 2017, the BPC announced that the proposed 25-billion-taka pipeline would be built by the Bangladesh Army.

The proposed pipeline will connect BPC's Chattogram tank terminal to Godnail tank terminal in Narayanganj and then will extend to Fatullah in Narayanganj.

Project delays

While the project was initially estimated to be completed by 2017, commissioning still has not occurred as of December 2019. As of January 2019, the project is still planned for implementation. In March 2020 BPC announced that due to design changes the pipeline would not be completed until June 2022.

COVID-19 further delayed the project as delivery of pipes from China was hampered.As of May 2021, 30 percent of the work was completed.