How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics


How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics

In September 2018, India and Bangladesh entered an agreement for a cross-border pipeline to carry one million tonne diesel annually from Siliguri (West Bengal) depot of the Numaligarh Refinery (NRL) to Parbatipur in Bangladesh. One year down the line, the project is gaining speed.

According to sources, the contracts for pipes are already in place and delivery is expected to start from November.

Meanwhile, the Bangladesh government is expected to notify landowners for right-of-way for the underground line. Of the 130-km long pipeline only six km is in India. The West Bengal government has already ensured the right of way. India is offering 303 crore financial assistance in completing the project that will largely meet the diesel requirements of northern parts of Bangladesh.

Bangladesh imported 4.8 mt of diesel in 2017-18. This includes 1-1.5 lakh kilolitre supplies by rail from India beginning 2016. In the absence of pipeline infrastructure, diesel is distributed mostly by river to the oil bunkers.

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