Representatives from the governments of China and Bangladesh signed an intergovernmental agreement the other day. Under the framework, China will fund and build an oil pipeline project for Bangladesh. The agreement is of great significance regarding progress of the Belt and Road Initiative and the construction of the Bangladesh, China, India and Myanmar economic corridor (BCIM).

According to the agreement, the project will include the construction of a single-point mooring system, a tank field and station facilities, as well as a 220-kilometre offshore and onshore oil pipeline. The total value of the project is 550 million US dollars. The project will be overseen by the China Petroleum Pipeline Bureau and will be provided favourable favourable terms by the Export-Import Bank of China.

Upon completion, the pipeline will not only significantly reduce the time required for offloading crude oil, but will also prevent environmental pollution caused by oil leakages, therefore reducing the transhipment costs and losses.