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20 October, 2017 01:16:43 AM / LAST MODIFIED: 20 October, 2017 09:34:12 AM

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Crude oil transfer deal in the pipeline

Installation of single-point mooring on Sonadia
JAGARAN CHAKMA
Crude oil transfer deal in the pipeline

An agreement is in the offing to fund the installation of a single-point mooring (SPM) on the Sonadia island and two 220-km-long pipelines to connect the SPM with Chittagong’s Eastern Refinery Limited (ERL), sources at the Economic Relations Division (ERD) say.

Bangladesh’s first SPM was scheduled to be completed by 2020.

An SPM facilitates the transfer of crude oil from mother vessels to offshore tanks and then to onshore tanks. The project’s main objective is to ensure the unloading of imported crude oil in a more efficient and time-saving manner.

ERD secretary Kazi Shafiqul Azam told The Independent that the agreement would be signed at any time now, as both sides were almost ready with the negotiation having been completed.

As per the memorandum of understanding between China and Bangladesh signed during the visit of Chinese President Xi Jinping in October 2016, China pledged a fund of $22 billion for 27 projects, this being one of them, the ERD secretary said.

“We have a target of signing agreements for at least eight projects within this fiscal year, for which we have prepared a list,” he added.

The state-owned Bangladesh Petroleum Corporation (BPC) initiated the SPM project five years ago to handle the transfer of crude oil from Kutubdia to Patenga.

SPM is an infrastructure, to be built in the Bay of Bengal, from where petroleum products will be carried through pipelines from mother vessels, to be moored from offshore to oil storage tanks onshore.

The BPC received an unsolicited technical offer from a Chinese petroleum firm, the China Petroleum Pipeline Bureau (CPPB), and a memorandum of understanding (MoU) was signed on September 29, 2014, for building the SPM in the Bay of Bengal to carry petroleum products onshore.

 The state-owned company will set up a 107-km pipeline under the SPM project with investment from the Chinese EXIM Bank.

On May 20, 2011, the BPC had appointed the ILF Engineering Consultancy, a German firm, to study the details of installing the SPM at a cost of €7.184m.

 In its latest study, the German firm said BPC should be build with two more separate 18 and 10 inch-diameter product pipelines at the outer anchorage in the Bay to the Moheshkhali Island to carry both crude and refined petroleum products onshore.

According to project summary, out of the estimated project cost, Tk 920.87 crore would come from the government exchequer, Tk 111.90 crore from the organization’s own fund, while Tk 3,903.20 crore as project assistance from the Chinese EXIM Bank.

The main objectives of the project are to ensure the unloading of imported crude oil and finished products (HSD) with ease, safely, at a low cost and within a short time, reducing system losses in the import of crude and finished products through lighterage operations, maintaining a balance between the growing demand of energy and its supply, enhancing the petroleum oil retention capacity through the setting up of a diesel and crude oil storage tank farm at Moheshkhali, and increasing energy supply security.

The project will establish an SPM and Pipe Line End Manifold (PLEM), set up 220 km pipelines, a tank farm and a pumping station at Moheshkhali, a Supervisory Control and Data Acquisition system, carry out land acquisition and offer compensation, expertise services, and put in place fire fighting systems and related facilities.

MK

 

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Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

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