The present political unrest appears to be delaying India’s proposal to build a cross-border diesel pipeline from Parbatipur upazila in Dinajpur to Natore, as reported by the Bangladesh Petroleum Corporation (BPC) and an Indian media site.
Established in March of last year, the pipeline connects Siliguri, West Bengal, to an oil warehouse in Parbatipur. It was inaugurated by former prime minister Sheikh Hasina and her Indian counterpart, Narendra Modi.
The “Indo-Bangla Friendship Pipeline” (IBFP) can convey 1 million tonnes of high-speed diesel per annum. It currently supplies the product to seven districts in northern Bangladesh.
Built at an estimated cost of Rs. 377 crore, of which the Bangladeshi section cost Rs 285 crore, funded by an Indian grant, this is the first cross-border energy pipeline between India and Bangladesh.
According to the BPC and an Indian media outlet, in July, Indian authorities indicated interest in expanding the pipeline and exporting more fuel, an idea that was approved by Bangladesh.
“We verbally agreed on a proposal to conduct feasibility studies to extend the pipeline up to Natore. But they are yet to start the studies,” Amin Ul Ahsan, chairman of the BPC, told the local media on Monday.
There is neither an issue to reject the project nor an issue to halt the existing operation, he said.
“We didn’t take up the issue in any discussion yet,” the chairman added.
According to the officials, Bangladesh imported around 4,000 tonnes of diesel in August from Numaligarh Refinery Limited, located in Assam.
In the next days, four more import orders are expected, with a total volume of almost 7,000 tonnes.
According to an article published by the Indian news outlet Mint, which cited three sources with knowledge of the issue, the Bangladeshi Government has now “pressed the pause button” on plans to expand the 131-kilometer pipeline.
“Since the project has been operating well and has been largely successful, there was a consideration as to why not further extend it to cater to more places in the neighbouring country [Bangladesh],” it said.
“Now, after the political situation somewhat destabilised, India would like to wait for the situation to stabilise for any further consideration and talks. No specific timeline can be given,” said one of the cited trio.
It as also reported that along with diesel, India was also considering a proposal to send high sulphur fuel oil (HSFO) and furnace oil to Bangladesh — which are largely used in the maritime industry and in heating homes, businesses and industrial units respectively.
Amin Ul Ahsan said Bangladesh failed to receive the fuel expected through the pipeline as all of the receiving tanks are yet to be brought under automation.
“We have some other issues, but we are continuing to import fuel through the pipeline as it costs less than importing from other countries. And we can save on internal transport costs as well,” he added.
