Ctg-Dhaka, Pitolganj-Kurmitola oil pipelines

Army, Navy likely to implement projects

The government has approved a proposal to have the Chittagong-Dhaka oil pipeline built by the Army and the Pitolganj (near Kanchan bridge) to Kurmitola aviation depot pipeline by the Navy -- the two projects that will together cost Tk 2,700 crore. “We have already completed negotiations with the Navy and we hope the work will start very soon,” Bangladesh Petroleum Corporation (BPC) director (operations and planning) Sayed Mohammad Mozammel Haque told The Independent.

“We have been talking with the Army about the implementation of the Chittagong-Dhaka oil pipeline project. There are some issues to be solved before the project can be implemented,” he added. Last month, the Energy Division sent a summary to the Prime Minister for her approval. The summary stated that the country currently meets 90 per cent of its petroleum demand by importing it through Chittagong port. But this system involves huge losses, theft, and other problems.

Earlier, the BPC wanted to award the Pitolganj-Kurmitola aviation depot project to the highest bidder on a build-own-operate-and-transfer (BOOT) basis. The bidders had proposed Tk. 0.98 per litre to carry the oil through the Pitolganj-Kurmitola aviation depot. This is quite high because the BPC currently needs only Tk. 0.46 per litre to carry it in oil tankers.  On July 27, the proposal process committee decided to award the project to the Navy. The committee observed that the Navy can easily implement the project, as it can acquire the land in time.

On the other hand, the proposal process committee also decided to award the Chittagong-Dhaka oil pipeline to the Army. The committee believes that the Army can do quality work and also save time in implementing the project.

So, on the basis of these recommendations, the Energy Division told the Prime Minister that under the Speedy Supply of Power and Energy (Special

Provisions) Act 2010, the Chittagong-Dhaka pipeline project could be awarded to the Army and the Pitolganj-Kurmitola project to the Navy.

Oil tankers, mostly owned by the private sector, have also been carrying fuel oil via various river routes. Currently, BPC imports about 1.3 million tonnes of crude oil and 4.2 million tonnes of refined oil, while around 300,000 tonnes of petroleum products are received from different gas fields and private fractionation plants.

The BPC official told The Independent that the Chittagong-Dhaka pipeline will be one of the important pipelines, as it will cross more than five districts and some rivers. The project needs Tk. 2,500 crore to be implemented.

Ctg-Dhaka, Pitolganj-Kurmitola oil pipelines

Army, Navy likely to implement projects

The government has approved a proposal to have the Chittagong-Dhaka oil pipeline built by the Army and the Pitolganj (near Kanchan bridge) to Kurmitola aviation depot pipeline by the Navy -- the two projects that will together cost Tk 2,700 crore. We have already completed negotiations with the Navy and we hope the work will start very soon, Bangladesh Petroleum Corporation (BPC) director (operations and planning) Sayed Mohammad Mozammel Haque told The Independent. We have been talking with the Army about the implementation of the Chittagong-Dhaka oil pipeline project. There are some issues to be solved before the project can be implemented, he added. Last month, the Energy Division sent a summary to the Prime Minister for her approval. The summary stated that the country currently meets 90 per cent of its petroleum demand by importing it through Chittagong port. But this system involves huge losses, theft, and other problems. Earlier, the BPC wanted to award the Pitolganj-Kurmitola aviation depot project to the highest bidder on a build-own-operate-and-transfer (BOOT) basis. The bidders had proposed Tk. 0.98 per litre to carry the oil through the Pitolganj-Kurmitola aviation depot. This is quite high because the BPC currently needs only Tk. 0.46 per litre to carry it in oil tankers. On July 27, the proposal process committee decided to award the project to the Navy. The committee observed that the Navy can easily implement the project, as it can acquire the land in time. On the other hand, the proposal process committee also decided to award the Chittagong-Dhaka oil pipeline to the Army. The committee believes that the Army can do quality work and also save time in implementing the project. So, on the basis of these recommendations, the Energy Division told the Prime Minister that under the Speedy Supply of Power and Energy (Special Provisions) Act 2010, the Chittagong-Dhaka pipeline project could be awarded to the Army and the Pitolganj-Kurmitola project to the Navy. Oil tankers, mostly owned by the private sector, have also been carrying fuel oil via various river routes. Currently, BPC imports about 1.3 million tonnes of crude oil and 4.2 million tonnes of refined oil, while around 300,000 tonnes of petroleum products are received from different gas fields and private fractionation plants. The BPC official told The Independent that the Chittagong-Dhaka pipeline will be one of the important pipelines, as it will cross more than five districts and some rivers. The project needs Tk. 2,500 crore to be implemented.