Ashish Ranjan
India-Bangladesh Friendship Pipeline Launched: The India-Bangladesh Friendship Pipeline was jointly inaugurated by Prime Ministers Narendra Modi and Sheikh Hasina via video-conferencing on Saturday.”Bangladesh has achieved remarkable progress in recent years. In his address to the virtual event, Prime Minister Modi stated, “Every Indian is proud of this, and we’re delighted to have contributed to Bangladesh’s development journey.”
“I am confident that this pipeline will further accelerate Bangladesh’s development and serve as a model for enhancing connectivity between the two nations,” he added.In September of 2018, the two prime ministers attended the groundbreaking ceremony for the pipeline.The recently inaugurated pipeline stretches 125 kilometres within Bangladesh and five kilometres within India and is significant for the following reasons:
First cross-border energy conduit
This is the first energy conduit between India and Bangladesh that Delhi will utilise. The Pipeline was constructed using approximately Rs 3.46 billion from the Indian Line of Credit (LoC) in order to export diesel to Dhaka and the Bangladesh Petroleum Corporation.
Price and capability
It was constructed at an estimated expenditure of Rs 377 billion. The Bangladesh section of the conduit has been constructed at a cost of approximately Rs 285 crore, which the Indian government has funded through a grant.The pipeline is capable of transporting one million metric tonnes per annum (MMTPA) of petroleum, which will initially be supplied to seven districts in northern Bangladesh.
Hope in times of adversity
Bangladesh imports the majority of the fuel required to generate electricity.Despite a rise in power demand, Bangladesh was compelled to reduce imports in 2022 due to high global prices. This resulted in a fuel scarcity that resulted in weekly hours of darkness for millions of citizens during the second half of 2022.
Economic advantages
Initially, Bangladesh would purchase approximately 2,500,000 tonnes of petroleum. It was increased to 4 to 5 million tonnes in subsequent years.The cost to transport each barrel of petroleum from the port city is approximately $8 USD.The pipeline would reduce costs to approximately $5 per litre.
It will also reduce the time it takes to transport diesel by waggons and trawlers from the ports of Chattogram and Mongla to just one hour, as opposed to the current situation where it takes several days.
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Rapid delivery at minimum expense
This pipeline would help ensure a steady supply of diesel in Bangladesh’s sixteen northern districts under Rangpur and Rajshahi.It will assure the rapid delivery of fuel at the lowest possible cost.
