Bangladesh begins fuel oil supply from Chattogram to Dhaka via pipeline

The pipeline is expected to save Tk 2.36 billion a year

Fuel oil has begun flowing from Chattogram to Dhaka through a newly constructed pipeline, a move officials say will cut costs, speed up delivery, and reduce environmental risks.

Energy Advisor Fouzul Kabir Khan inaugurated the project on Saturday at Padma Oil’s Despas Terminal in Chattogram's Patenga.

The 237km pipeline, built by the Bangladesh Army’s 24 Engineer Construction Brigade, will transport up to 2.7 million tonnes of diesel annually to the capital.

“We’ve been conducting trial operations for the past six weeks without any problems,” Project Director Aminul Haque told bdnews24.com.

Officials said the pipeline had already delivered 48.2 million litres of diesel during trial runs between June and early August.

Until now, oil from Chattogram had to be shipped by river to depots in Narayanganj and then transported by road to Dhaka, a process described as both costly and inefficient.

“Transport via pipeline will significantly reduce those expenses,” said one senior official, speaking to bdnews24.com on condition of anonymity.

“The project is expected to generate Tk 3.26 billion annually, while operating costs are estimated at Tk 900 million.” he added. “That means yearly savings of Tk 2.36 billion. The full project cost could be recovered within 16 years.”

Project Director Aminul said pipeline transport would be much cheaper than current road and river options.

“Excluding maintenance costs, annual savings could exceed Tk 2.36 billion,” he said.

He also noted the system’s resilience. “This pipeline allows fuel transport in a fast, time-efficient way -- even under adverse conditions such as extreme weather or natural disasters. It also helps prevent environmental pollution and system loss.”

Work on the pipeline began in 2018, two years after the Bangladesh Petroleum Corporation approved the project. Completion was delayed three times, with costs rising from the initial estimate of Tk 28.61 billion to nearly Tk 36.99 billion.

The pipeline runs in two parts: one from Patenga through Feni, Cumilla, Chandpur, and Munshiganj to Narayanganj’s Godnail depot, and a second from Godnail to Fatulla. The project also includes booster pumps, generators, and other supporting infrastructure.