A major oil handling and storage project in Bangladesh, built at a cost of more than Tk8,000 crore, has remained largely unused since its completion, raising concerns over inefficiency and lost economic potential.
The Single Point Mooring (SPM) project at Maheshkhali in Cox’s Bazar, designed to unload oil directly from large vessels and transport it via pipeline, has yet to become operational due to delays in appointing an operator.
Despite being completed in 2024, the facility — including floating buoys, about 220 kilometres of pipelines, and six large storage tanks — has not been put into use, leaving its full storage capacity idle.
Under this project, floating buoys, about 220 kilometers of pipeline for oil transportation, and storage tanks with a capacity of two hundred thousand tons have been constructed in the Bay of Bengal. If it is fully operational, it is possible to save about 8 billion taka per year.
The SPM infrastructure consists of two separate pipelines, each 110 kilometers long, from the deep sea to the Eastern Refinery via the Maheshkhali pumping station. In addition, a pumping station, diesel generators and six tanks have been built on an area of about 100 acres.
Each of the three tanks for crude oil has a capacity of 60,000 kiloliters or 42,000 tons. Each of the three diesel tanks has a capacity of 36,000 kiloliters or about 25,000 tons. In total, it is possible to store two hundred thousand tons of oil.
At present, oil is brought from the deep sea in large ships and taken to the Eastern Refinery in small ships through the Karnaphuli Channel. It takes about 11 days to unload one hundred thousand tons of oil. However, this work can be done in a pipeline within 48 hours.
If this modern method is implemented, it will save time and money, reduce transportation waste and play a role in environmental protection.
However, the main reason why the project has not been launched is the complexity of hiring an operator. The project was implemented under the supervision of the Eastern Refinery under Bangladesh Petroleum Corporation.
During the then government, a decision was made to implement and operate the project without a tender under a special law. But since that law was repealed during the interim government, a new open tender had to be called. As a result, time was lost and the appointment of the operator has not yet been completed.
Once the project is launched, it will be possible to unload and transport about 9 million tons of crude oil and diesel per year. Although about 70 percent of this can be used with the current refinery capacity. At present, the country has the capacity to refine about 1.5 million tons of crude oil per year.
Due to the high demand for diesel, it will be possible to transport more than 4.5 million tons of diesel per year, according to those concerned.
Energy experts said that this infrastructure could have played a big role in the ongoing crisis. This could have reduced the cost and waste of the lighterage system.
Independent University Bangladesh Vice Chancellor Dr. Mohammad Tamim said that the delay could have been avoided if steps were taken on priority. According to him, oil transportation through pipeline system is fast, economical and environment-friendly.
He also said that the country is being deprived of saving money and storage facilities due to the project not being operational, while the debt pressure remains. This stock of 200,000 tons can also be used as a permanent strategic stock.
Energy expert Dr. Badrul Imam said that the pipeline system is modern, fast and less expensive. If it is lying, then why it is lying should be investigated and initiatives should be taken to launch it quickly.
Joint Secretary of the Energy Department Morsheda Ferdous said that the tender evaluation process is underway and efforts are being made to launch the project quickly.
A Petroleum Transmission Company has been formed to manage the project. Although there are plans to operate it with its own manpower in the future, it will be operated through a contractor for now.
However, the concerned could not give a specific time frame for when the project will be launched.
Bd-pratidin English/TR
