Abu Bakr Siddique, chairman of Bangladesh Petroleum Corporation or BPC, inaugurated the project work on Thursday at Sonapukur.
Bangladesh will use the pipeline to import fuel oil for the Parbatipur depot from Numaligarh in India's Siliguri, Project Director Tipu Sultan said.
The authorities expect to complete the project by June 2022. Six oil tanks with a total capacity of 4,800 tonnes of oil and another two fire water tanks will also be constructed under the project.
"Once the work is done, oil will directly arrive from India and this will reduce the transportation cost. There will be no fuel oil crisis in northern parts of the country after the completion of the project work,” the BPC chairman said.
About five kilometres of the pipeline are in India and the rest is in Bangladesh, according to officials.