State-owned Bangladesh Petroleum Corporation (BPC) signed a deal with China Petroleum Pipeline Bureau (CPPB) to install single-point mooring (SPM) with double pipeline for the state-run Eastern Refinery Limited (ERL).
SPM is an infrastructure, to be built in the Bay of Bengal, from where petroleum products will be carried through pipelines from mother vessels–to be moored from offshore to oil storage tanks onshore.
CPPB will build the SPM as an engineering, procurement and construction (EPC) contractor. It will construct the SPM on Sonadia Island in deep sea.
Sayed Mohammad Mozammel Haque, Director of BPC and Zhao Yujian, President of CPPB signed the agreement on behalf of their respective organisations at a Hotel in the city on Thursday.
The deal was signed under the Speedy Supply of Power and Energy Act. Its main objective is to ensure un-loading of imported crude oil and finished products easily and at a low cost and short time.
The estimated cost of the SPM project is Tk 5426.26 crore. The project is designed for ensuring un-loading of imported crude oil from deep sea in a more efficient and time-saving manner.
According to deal, BPC will set up the SPM with the financial support of the Chinese EXIM Bank by July 2018.
A total of 220 kilometre-long pipelines will be installed from the floating terminal (SPM) on the water of Bay of Bengal to ERL, a subsidiary of Bangladesh Petroleum Corporation, at Patenga in Chittagong.
BPC imports crude and refined petroleum from different Middle-eastern and other countries using Chittagong port.
Lighter vessels unload the oil at deep sea from mother vessels. Then the crude oil is carried on oil tankers to the ERL for distillation.
With installation of the SPM, the BPC would be able to cut oil-unloading period to nine days from the existing 21 days from a 20-tonne lighter ship. It will also be able to save Tk 800 crore.
Speaking on the signing ceremony as the chief guest, State Minister for Power and Energy Nasrul Hamid, Energy and Mineral Resources Division said that the signing of this much awaited project has taken a long time.
“The signing is finally done today and I hope the project will be completed soon on time,” he said.
Energy and Mineral Resources Division Secretary Nazimuddin Chowdhury, BPC Chairman Md Mahmud Reza Khan were also present the signing ceremony.