The government will construct a 250-km fuel oil pipeline between Chittagong and Dhaka by 2017 aiming to reduce transport cost and stopping pilferage of fuel.
An official of Energy and Mineral Resources Division (EMRD) told energynewsbd.com recently.
To implement the project, the government, meanwhile, has instructed the state-run Bangladesh Petroleum Corporation (BPC) to conduct a feasibility study in this regard, the official said.
“The government would set up the pipeline spending around Tk1200 crore and it would ultimately save Tk130 crore annually,” he said, adding: “The pipeline will also ensure fuel security.”
The official added that BPC has been instructed to conduct the study by August 22, 2015, while the Padma Oil Company Limited would prepare the document.
A high level meeting held recently decided that the fuel pipeline would be installed on the roadside instead of land acquisition, which is expected to complete in 2017, he said.
He informed that the fuel pipeline would ensure fuel security in the capital city as well as the country`s main airport by supplying fuel much faster.
The EMRD official also said the Gas Transmission Company Limited (GTCL) could implement the project following deposit work system as the BPC had no experience in this regard.
The direct petroleum fuel pipeline would supply imported fuel and crude oil from Chittagong to the capital city that will save both time and cost.
Besides, Ministry of Power, Energy and Mineral Resources has also undertaken another project to install 16-km fuel pipeline from Kanchan Bridge to Hazrat Shahjalal International Airport with an estimated cost of Tk40 crore, said a ministry official.
The government has prepared a document, fixing a target to complete the project by 2016, he said, adding the project will save Tk24 crore annually.