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Bangladesh to build pipeline with China’s assistance

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World Pipelines,

The Bangladeshi government signed a framework agreement with China on Sunday for construction of a 220 km pipeline to carry oil from tankers in the Bay of Bengal to storage plants on the mainland.

Bangladesh, with the assistance of China, will construct a 220 km (138 miles) pipeline that includes a 146 km offshore stretch to unload imported oil from ships, a government minister said on Monday.

"Bangladesh and China signed an agreement on Sunday to build this pipeline in the southeast of the country to unload oil from ships in the Bay of Bengal and deliver it onshore," Nasrul Hamid, Bangladesh's Junior Minister for Power, Energy and Mineral Resources said.

Kazi Shofiqul Azam, secretary of Economic Relations Division (ERD) and Chinese Ambassador to Bangladesh Ma Mingqiang signed the agreement on behalf of their respective sides at the ERD office in Dhaka on Sunday.

On 8 December, 2016, the state-owned Bangladesh Petroleum Corporation (BPC) signed a Tk 5426.26 crore deal with China’s state-owned oil pipeline contractor China Petroleum Pipeline Bureau (CPPB) to install a single point mooring (SPM).

The CPPB will set up the project as the EPC (engineering, procurement and construction) contractor.

Funding for Bangladesh’s first SPM was scheduled to be arranged by June and the project was scheduled to be completed by 2020.

The project’s main objective is to ensure the unloading of imported crude oil in a more efficient and time-saving manner.

With installation of the SPM, Bangladesh Petroleum Corporation will be able to cut the oil-unloading period from 21 days to just nine, from a 20 t lighter ship.

The CPPB will build the SPM as well as the pipelines that will connect the SPM with Chittagong’s Eastern Refinery Limited.

The project was launched as Bangladesh is not capable of handling large vessels carrying imported crude and finished oil, due to low navigability of a key river channel and constrained facilities at the main seaport in Chittagong.

According to the officials, large tankers anchor at deep sea and smaller ships unload them, taking lots of time and causing systematic losses for the government.

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