CHATTOGRAM Sept 18: The final disbursement of Chinese loan for the project Installation of Single Point Mooring (SPM) with double pipe line under the Bangladesh Petroleum Corporation (BPC) has already paid by the Exim Bank of China. But the last date of disbursement was September 19, BPC sources said.
Earlier on August 19 last, the BPC management sent a bill to the Exim Bank of China for payment of final disbursement of a total amount of 51 million US Dollar to the appointed contractor China Petroleum Pipeline Engineering Co Ltd (CPPEC). The last date for disbursement had been fixed at September 19. But the Exim Bank had disbursed it at the beginning of September.
Of the total loan amount, China is providing $467.84 million as preferential buyers' credit and the remaining $82.5 million as soft loan.
Exim Bank of China is providing the money to be repaid in 20 years at an interest rate of 2.0 per cent per annum with a five years grace period.
Meanwhile, the total cost of the SPM and installation of double pipeline has been enhanced to an amount of taka 8,298 crore.
In a recently held meeting, the Executive Committee of the National Economic Council (ECNEC) has enhanced the cost of the Installation of Single Point Mooring (SPM) with double pipe line in the 4th revised DPP with an additional cost of Taka 1,173.56 crore.
In the mean time, the construction works of the project had been completed in April last despite the deadline in December this year. The commissioning of the project has also been completed. The appointed contractor is now waiting to hand over the project to BPC.
Meanwhile, the appointed contractor China Petroleum Pipeline Engineering Co Ltd (CPPEC) expressed their intention for maintenance and operation of the project for the next thtree years which is now under consuideration of the government.
Besides, in order to operate the project, BPC has already constituted a new company named 'Petroleum Transmission Company' (PTC).
PTC will be solely responsible for overall operation of the SPM and the pipeline.
The PTC has been formed on the model of Gas Transmission Company Limited (GTCL), a gas transmission pipeline construction and maintenance company under Petrobangla. BPC has approved 'Petroleum Transmission Company (PTC-PLC)' as a private limited Company.
According to BPC sources, this project has been undertaken to save cost and time in clearing imported liquid fuel.
The distance of SPM to Storage tanks in Matarbari is 16 km offshore while the distance from Matarbari Storage tanks to ERL tanks is 94 km totalling of 110 km long pipeline.
Of the total 110 km long pipeline includes 73 km is on-shore while 37 km is offshore from SPM to ERL site.
Bangladesh Government has taken the project of the installation of Single Point Mooring (SPM) and 110 km long double pipeline from the Matarbari to the Eastern Refinery Limited.
The main objectives of the project are to ensure unloading of imported crude oil and finished products including diesel with ease, with low cost and in short time, reducing the system loss in import of crude and finished products through lighterage operation, keeping balance between the growing demand of energy and its supply, enhancing the petroleum oil retention capacity through setting up of six diesel and crude oil storage tanks at Moheshkhali and increasing energy supply security.
The BPC sources said, with its installation, a total of taka 800 crore will be saved annually.
At present, the country imports nearly 80 million tons of crude and refined petroleum fuel to meet the annual demands. Of them nearly 1.2 million tons are refined in ERL, the only refinery of the country.
This import is expected to rise significantly when a number of fuel-fired power plants have already been set up in the country.
Of the double pipeline, one will be used for transmission of Crude oil and another for Diesel. Both the pipelines are eligible to pump over 45 million tonnes annually.
The pipeline for transportation of diesel might be used for 45 million tons annually. But the pipeline for crude oil might not be used fully with the capacity of 45 million tons.
The Eastern Refinery Limited (ERL) only refinery of the country can refined nearly 15 million tons annually. As a result, the pipeline for crude oil will remain partially inoperative till the construction of second unit of ERL.
Under the project, a storage capacity of two lakh tonnes has been developed at Moheshkhali. According to the sources, the SPM has been set up in the Bay of Bengal, west off the coast of Kalamarchhara union under the Moheshkhali upazila in Cox's Bazar.
Crude oil and diesel will be unloaded from SPM through two separate pipelines of 36 inch diameter. The oil will be brought to a pump station at the Kalamarchhara through a pipeline of 16 km.
From there, those will be transported to the ERL through 94-km long pipelines. The ERL, having an annual capacity of refining 15 lakh tonnes of crude oil, now can store 5 lakh tonnes of oil, said sources.
