Energy Bangla - 77-km Submarine Pipelines to Supply Oil from Tankers to Refinery Depots

Dhaka , July 24: Bangladesh Petroleum Corporation (BPC)-run Eastern Refinery Limited (ERL) will install 77-kilometer long submarine pipelines for straight supply of imported crude oils from the Bay to the refinery depots in Chittagong .

ERL, a sister concern of BPC, has already launched preliminary work. It has taken up a TK 952 crore submarine pipeline installation project to ease the delivery intricacy and procrastination in shifting of fuel oil from mother tankers in the deep sea.

BPC sources said ERL had already completed the pre-bid discussion with six foreign companies to appoint an efficient consultant for this project on the basis of Expression of Interest (EI) on July 20 and also asked the companies to submit their proposals within August 30 next.

The project cost of Taka 903 crore will be financed by Islamic Development Bank (IDB) and the rest Taka 49 crore will be available from the Government of Bangladesh (GOB). ECNEC has already approved the project and IDB has also given the final consent for releasing the fund, sources said.

ERL officials hoped that the final work of the installation would begin in November next and be completed in 2012 if everything is all right.

Monir said the pipelines would a route of 61 kilometers under the sea from the southwest of coastal Island Kutubdia to Parky Beach of Anwara in Chittagong and from there it will finally be linked to ERL oil depots.

A four-member delegate of IDB experts after spot visit primarily agreed to invest in the project in November last year.

ERL invited EI and 33 international companies including from America , Malaysia , Germany and the Netherlands have applied, of which ERL chose six companies and will finally appoint one of them.

If this modern technology-based project is implemented, it will be an epoch-making step for rapid delivery and saving time in supplying crude oils from mother tankers to ERL.

According to BPC sources, Bangladesh annually imports 38 lakh tons of fuel oil, of which 12 lakh tons is crude oil.

This amount of the crude oil is refined in the country's lone oil refinery.

Bangladesh Shipping Corporation (BSC), a national flag carrier, presently delivers petroleum products from the mother tankers anchored near Kutubdia Island by its vessels to the depots.

This process of delivery takes much time and over-costs. Besides, the delivery process sometimes is stopped if the BSC ships remain inoperative.