New Delhi: Prime Minister Narendra Modi and Prime Minister of Bangladesh Sheikh Hasina jointly inaugurated the India-Bangladesh Friendship Pipeline (IBFP) in a virtual mode.
The foundation stone for the construction of this pipeline was laid by both Prime Ministers in September 2018. Numaligarh Refinery Limited has been supplying petroleum products to Bangladesh since 2015. This is the second cross-border energy pipeline between India and its neighbours.
Cooperation in the power and energy sector has become one of the hallmarks of India-Bangladesh relations.
IBFP is the first cross border energy pipeline between India and Bangladesh with a capacity to transport 1 Million Metric Ton Per Annum (MMTPA) of High-Speed Diesel (HSD) to Bangladesh. Enhanced connectivity with Bangladesh will further strengthen people to people linkages between two sides.
Pipeline will enhance ongoing energy cooperation between two countries
Bangladesh is India’s top-most development partner and its largest trade partner in the region. The operationalisation of the Friendship Pipeline will enhance ongoing energy cooperation between the two countries and will further growth in Bangladesh, particularly in the agriculture sector.
Prime Minister thanked Prime Minister Sheikh Hasina for her constant guidance on the project and expressed his wish to continue working with her for the benefit of the people of the two countries.
Bangladesh imports the bulk of the fuel it needs for electricity.
High global prices forced Bangladesh to slash its imports in 2022 despite a rise in power demand. This resulted in a fuel shortage that forced millions of citizens into hours of darkness every week during the second half of 2022.
Pipeline will reduce cost and time of transportation of fuel
Initially, Bangladesh would buy some 2.5 lakh tonnes of diesel. It will be then increased up to 4 to 5 lakh tonnes in the following years.
It costs around 8 US dollars for each barrel of fuel to be transported from the port city. The pipeline would reduce the cost to around 5 US dollars per barrel.
It will also reduce the transportation time to just one hour as opposed to the current situation of taking several days to transport diesel via wagons and trawlers from the Chattogram and Mongla ports.
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