The construction of a fuel pipeline from Chattogram to Dhaka is nearing completion, with 250 kilometers already installed. The Bangladesh Petroleum Corporation (BPC) plans to begin oil transportation through the pipeline by March, projecting annual savings of Tk 2.36 billion.
BPC officials highlighted that the pipeline will reduce transportation costs, improve supply chain efficiency, and minimize environmental pollution.
It has a capacity to transport 2.7 million tons of diesel annually, exceeding the current demand of 2.14 million tons.
Approved in October 2018, the project was initially scheduled for completion by December 2020 but started in 2020. Deadlines were later extended to December 2022 and December 2024.
The project cost has risen from its initial estimate of Tk 28.61 billion to Tk 36.99 billion. The 24th Engineer Construction Brigade of the Bangladesh Army is overseeing the implementation.
The pipeline comprises two sections: the first runs from Patenga in Chattogram through Feni, Cumilla, Chandpur, and Munshiganj to the Godnail Depot in Narayanganj; the second extends from Godnail to Fatullah.
Additional infrastructure includes booster pumps, nine generators, and other equipment.
Currently, Bangladesh consumes an average of 6.5 million tons of fuel annually, with 6.7 million tons supplied during the 2023–24 fiscal year, 75% of which was diesel.
Dhaka division accounts for 40% of total fuel demand. Presently, oil is transported via waterways from Patenga to depots in Narayanganj, then by road to Dhaka. This method involves approximately 150 vessels per month and costs Tk 2 billion annually.
The project is expected to generate Tk 3.26 billion in annual revenue. After deducting Tk 900 million for operations, maintenance, fuel, electricity, and land rentals, net annual savings are projected at Tk 2.36 billion, with the investment expected to break even within 16 years.
According to Project Director Md. Aminul Haque, construction will be completed by December, followed by trial runs before full-scale operations begin.
BPC Director (Operations and Maintenance) Anupam Barua confirmed that oil transportation through the pipeline is set to start in March.