Diesel exports to BD thru friendship pipeline reach $34m in one year: Indian envoy

Since the inauguration of the pipeline last year, 42 thousand metric tonnes (TMT) of diesel, valued at a total of USD 34 million, have been exported to Bangladesh, said Indian High Commissioner Pranay Verma while inaugurating the Liaison Office of Numaligarh Refinery Limited (NRL) on Monday in Dhaka.

The Friendship Pipeline Project, which was jointly inaugurated by the prime ministers of India and Bangladesh virtually on 18 March 2023, is the first cross-border pipeline between the countries for the supply of petroleum products to Bangladesh.

This pipeline has a capacity to transport one Million Metric Tonnes Per Annum (MMTPA) of high-speed diesel and has been completed at a total estimated cost of over INR 3.75 billion, of which over INR 2.85 billion has been spent for the construction of the Bangladesh portion of the pipeline under a government of India grant, the Indian envoy said.

With the completion of the pipeline, the cross-border supply of high-speed diesel has become faster and more economical, offering a sustainable, reliable, and cost-effective way of transporting high-speed diesel to Bangladesh with a minimal carbon footprint.

Bhaskar Jyoti Phukan, managing director (MD) of Numaligarh Refinery Limited (NRL) and Md Tipu Sultan, MD of Meghna Petroleum Ltd, were present during the inauguration.

High Commissioner Pranay Verma said that India and Bangladesh have made unprecedented progress in advancing relations between the two countries in the last decade.

One of the key manifestations of that transformation is the growth in bilateral trade and economic engagement, and connectivity links, he mentioned.

Mr Verma noted that collaboration in the power and energy sector has become one of the hallmarks of this all-encompassing relationship, and the Friendship Pipeline is a testament to the growing partnership in this important sector.

Bangladesh Petroleum Corporation (BPC) has taken ownership of the pipeline and is now operating the pipeline with the last four consignments of high-speed diesel managed independently.

Mr Verma added that with the inauguration of the liaison office, NRL would be able to more effectively explore such collaborations with Bangladesh authorities in future for supplying petroleum products.