DHAKA, Dec 24, 2024 (BSS) - The first ever Dhaka-Chattogram fuel oil transportation pipeline is set to be commissioned towards the end of January 2025 aimed at beginning commercial operation from April, saving an amount of Tk. 236 crore in transport cost annually.

"The pipeline would not only ensure the secure transportation of fuel oil but also eliminate costs and misuse of fuel," chairman of Bangladesh Petroleum Corporation (BPC) Amin Ul Ahsan told BSS. 

He said the 250-kilometre fuel oil transportation pipeline from Chattogram to Dhaka has been installed at a cost of Tk. 3698 crore, adding, "It has the capacity of carrying 54 lakh tonnes of diesel per year for 25 years without any major disorder. The capital requires only 27 lakh tonnes fuel oil per year."

The chairman said the environment friendly fuel oil transportation pipeline will be able to carry 65 percent diesel against the country's annual demand. 

According to the project details, the launch of the first underground pipeline -- from the port city's Patenga area to Godnail and then to Fatullah on the outskirts of the capital -- is expected to save about Tk 230 crore every year in fuel transportation costs.

It said at present, diesel is transported from Chattogram to the rest of the country by river, rail and road, which causes frequent incidents of oil theft.

The project details said the fuel oil transportation pipeline from Chittagong to Dhaka is scheduled to complete by December 2024, which was started in October 2018.

It said Bangladesh Petroleum Corporation (BPC) will transport fuel oil through the pipeline with its own management from April 2025. 

It added the cost of transporting oil will be reduced by this project. Besides, the supply system will be smoother while it will be possible to prevent environment pollution as well.

According to project documents, the project was approved in October 2018. Petrol and octane would continue to be transported via traditional methods such as railway wagons and riverine tankers.

Implemented by the 24 Engineer Construction Brigade of the Bangladesh Army, the project covers 250 kilometres between Dhaka and Chattogram, 59 kilometres between Cumilla and Chandpur, and 8.5 kilometres from Fatullah to the Godnail depot.

The pipeline also aimed to curb fuel theft and syndicates surrounding lighterage operations, particularly at the Godnail depot, which has been plagued by theft disguised as wastage during unloading.

Despite resistance from lighterage vessel owners and theft syndicates, the pipeline is now poised for completion.

Preparations for irrigation season are underway, with northern distributors being engaged to ensure uninterrupted fuel supply.

The northern region, known as the nation's granary, previously faced logistical challenges in fuel transportation, relying on lighterage ships to Baghabari and subsequent transport via tank lorries or railways.

As Bangladesh does not produce fuel, the majority is imported, with lighterage vessels being relied upon due to navigational challenges at major river ports.

The pipeline is expected to reduce this dependence, streamlining the country's energy supply chain.