Dhaka – Bangladesh and India are set to construct a 130-kilometer long pipeline aiming at pumping Indian oil into energy-hungry Bangladesh as per an agreement, officials said.
Bangladeshi Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi are scheduled to inaugurate the construction of the “India-Bangladesh Friendship Pipeline” through a video conferencing on Tuesday.
The oil pipeline will connect Bangladesh’s northern Parbatipur of Dinajpur district and Shiliguri of Indian State of West Bengal with Bangladesh. The pipeline will have the capacity of transporting 1 million metric tons of fuel from India.
Bangladesh and India signed an agreement here on April 9 to set up the pipeline.
They inked a purchase agreement on Oct 22 in 2017 for importing diesel through the pipeline.
Through the cross-border pipeline, India will supply fuel oil from its Numaligarh Refinery Ltd (NRL), located at Golaghat in the north-eastern state of Assam, while Bangladesh will receive the oil at Parbatipur Depot of Bangladesh Petroleum Corporation (BPC) in north-western district of Dinajpur, the Bangladesh Petroleum Corporation said.
India will supply 250,000 metric tons of diesel for the first three years and the amount will be increased to 400,000 tonnes in the last five years.
The import of fuel will be further raised in future through the pipeline as per the requirements of Bangladesh.
The NRL will distribute diesel for 15 years through the pipeline and the time could be expanded following the consent of both sides, the BPC sources said.
With the completion of construction work of the pipeline, they said, the deal on sale and purchase will be made effective.
Bangladesh’s Parbatipur Depot formally received the first consignment of 2,268 MT diesel from the NRL through rail wagons on March 19, 2016.
Through the rail wagons, Bangladesh has imported 57,000 MT diesel from India till July 2018 and it is expected that 50,000 MT more will be brought from India in August-December 2018 through the same way.