Bay of Bengal-Chittagong Oil Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.

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Bay of Bengal-Chittagong Oil Pipeline is an offshore-onshore crude oil pipeline, currently under construction in Bangladesh. It is one of two pipelines associated with Bangladesh's Single Point Mooring (SPM) and Parallel Pipeline Project.

Location

The pipeline will run from the Bay of Bengal to Moheshkhali Island in Chittagong District, Bangladesh.

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Project Details

• Operator: Bangladesh Petroleum Corporation (BPC)
• Parent Company: Bangladesh Petroleum Corporation
• Current Capacity:
• Proposed Capacity: 90,000 barrels per day
• Length: 137 mi / 220 km
• Status: Construction
• Start Year: 2020

Background

In December 2016, the government of Bangladesh reached agreement with China Petroleum Pipeline Engineering Co., Ltd. (previously the China Petroleum Pipeline Bureau; CPP) for engineering, procurement, construction, and commissioning for installation of a SPM system for two parallel 220-km pipelines—the Bay of Bengal-Chittagong oil pipeline and the Bay of Bengal-Chittagong oil pipeline 2. CPP will build a 146-km offshore pipeline and 74-km onshore pipeline to carry imported oil from sea to a refinery in Chittagong district for processing. A diesel and crude oil storage tank will also be set up at Moheshkhali Island on the Bay of Bengal in Bangladeshi Cox's Bazar district. Oil from the pipeline will be refined in Chittagong, and ultimately piped to China.

The project was launched because Bangladesh is incapable 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. (At present, large tankers anchor at deep sea and smaller ships unload them, however this process takes time and causes systematic losses for the government.)

Although the project start was delayed, in June 2019, the first horizontal directional drilling crossing of the Single Point Mooring and Parallel-pipeline Project in Bangladesh (SPM project) was successfully pulled back, and the first directional drilling of the SPM project was completed.