Bangladesh and China tie up for $550 million project

Dhaka: Bangladesh’s Power, Energy and Mineral Resources Minister on Monday announced that the country will soon be constructing a 220 km pipeline including the 146-km offshore stretch to unload oil from ships.

The construction of the pipeline will begin with the assistance of China.

The estimated cost of the project is around $550 million and will be built on Moheshkhali Island, nearly 10km west of Cox Bazar said the energy officials.

“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,” said Nasrul Hamid, Bangladesh Minister for power, energy and mineral resources.

The project is estimated to be completed by 2020. China’s Exim Bank is providing the fund as a loan to be repaid in 20 years with an annual interest of 2 percent and a five year grace period.

Bangladesh’s Petroleum Corp currently imports oil via ships and transfers it into small coast tankers

The Government can save up to 10 billion taka($120 million) annually on shipping and transfer costs after the completion of the pipeline said the Minister.

Bangladesh had agreed with China Petroleum Bureau for single point mooring system and other facilities last year in December.