Views:5 Author:Site Editor Publish Time: 2019-06-03 Origin:Site
Dhaka, Oct. 30 (xinhua) -- liu chuntao Representatives of the governments of China and Bangladesh signed an inter-governmental framework agreement on Wednesday, which will provide financing for the construction of an oil pipeline project in Bangladesh. The agreement is of great significance to the implementation of "One Belt And One Road" cooperation and the construction of bcim economic corridor.
"Bangladesh and China signed an agreement on Sunday to build the pipeline in the southeast to unload oil from tankers entering the bay of Bengal and bring it ashore," hamid, Bangladesh's deputy minister of power, energy and mineral resources, told Reuters.
Chinese ambassador to Bangladesh ma mingqiang and permanent secretary of the bureau of economic relations, ministry of finance of Bangladesh signed the agreement on behalf of the two governments.
According to the agreement, the project includes the construction of single-point mooring systems, tank farms and yards, and the laying of 220 kilometers of offshore and onshore oil pipelines, 146 kilometers of which are under the sea. The project is planned to install oil tanks on mohaskari island, about 10 km west of cox's bazar port, under a us $550 million contract from the China petroleum and natural gas pipeline administration.
The export-import bank of China will provide the loan financing, which will be repaid over 20 years with an annual interest rate of 2% and a five-year grace period. The project will be completed by 2020.
Bangladesh has only one refinery with an annual capacity of 1.5 million tons of crude oil, which is not enough to meet domestic demand, and the government plans to raise it to 4.5 million tons. At present, all the crude oil needed for the refinery is imported from abroad, transported by large tankers to the coast of Bangladesh, and then reversed to the refinery terminal by small tankers. To meet refinery expansion needs, the government plans to build a single-point mooring and oil pipeline in the eastern region of monlaga bay to transport oil from large tankers directly to the refinery.
Currently, the state-owned Bangladesh petroleum corporation offloads imported oil to small tankers along the coast by ship - to - ship transfer. After completion of the project, not only can the unloading time of crude oil be greatly reduced, but also can avoid environmental pollution caused by crude oil leakage and reduce the cost and loss of crude oil transfer. Hamid said the pipeline project would save the government about 10 billion bangladeshi taka ($120 million) a year in shipping and lightercosts.
In December 2016, Bangladesh signed an agreement with China petroleum pipeline administration to jointly promote engineering, infrastructure and trial operation of single-point mooring system and other facilities.