Biz-Econ

Chattogram-Dhaka fuel link goes live experimentally

Bangladesh launched fuel oil transportation through a 250-kilometre pipeline from Chattogram to Dhaka on Monday, May 5, marking the completion of a long-delayed infrastructure project aimed at slashing costs and streamlining supply. 

Dr AKM Azadur Rahman, Director (Operations and Planning) at Bangladesh Petroleum Corporation (BPC), confirmed to Jago News that experimental operations began ahead of the planned May 7 start.

“This is a trial phase lasting seven to 10 days to identify and fix issues before the official inauguration,” Azadur said. 

The pipeline, constructed by the Bangladesh Army’s 24 Engineer Construction Brigade, will transport 2.7 million tonnes of diesel annually, saving an estimated Tk 236 crore yearly by reducing reliance on costly river and road transport.

The pipeline runs from Patenga in Chattogram to the Godnail depot in Narayanganj via Feni, Comilla, Chandpur, and Munshiganj, with a secondary segment to Fatulla. 

Approved in October 2018 at an initial cost of Tk 2,861 crore, the project faced delays, with costs rising to Tk 3,699 crore. 

Originally set for completion in December 2020, it was extended to December 2024.

Currently, Bangladesh’s fuel demand averages 6.5 million tonnes annually, with 6.7 million tonnes supplied in 2023–24, 75 per cent of which is diesel. 

Dhaka consumes 40 per cent of the total. The existing system relies on 150 monthly ship trips from Patenga to Narayanganj, followed by road transport, incurring high costs. 

The pipeline is projected to generate Tk 326 crore annually, offset by Tk 90 crore in operational expenses, with investment recovery expected within 16 years.