The 237-kilometre Dhaka-Chattogram diesel pipeline is fully ready for commercial operation following the successful completion of trial runs, marking a milestone in Bangladesh’s fuel transportation system. The pipeline is expected to save the country approximately Tk 2.36 billion annually by cutting logistics costs and improving supply efficiency.
For the first time in the country, diesel will be transported via pipeline, replacing traditional river and road transport modes. Speaking to Just Energy News, Bangladesh Petroleum Corporation (BPC) Chairman Amin Ul Ahsan confirmed that commercial operation will begin by the third week of July. “We expect the Bangladesh Army to formally hand over the pipeline within the next two to three weeks, after which operations will commence,” he said.
Trial operations started on June 24 and continued for five days, during which 6,000 tonnes of diesel were successfully transported from Chattogram to the Godnail depot in Narayanganj under the supervision of the Army. Officials reported a 100% success rate.
The pipeline, with an annual transport capacity of 2.72 million tonnes of diesel, is designed to resolve longstanding logistical issues associated with diesel delivery from Chattogram to Dhaka. Diesel currently accounts for around 67% of Bangladesh’s total fuel consumption, and Dhaka alone consumes about 40% of the national diesel supply.
“Even if rail wagons are available, locomotives often aren’t. Roads suffer from congestion and delays, and river routes become unusable during the dry season due to low navigability. This pipeline will eliminate all those problems,” said the BPC Chairman.
Bangladesh imports nearly 92% of its fuel. For the fiscal year 2024–25, the government plans to import 5.91 million tonnes of refined petroleum products—3.08 million tonnes through government-to-government contracts and 2.83 million tonnes through open tenders. An additional 1.4 million tonnes of crude oil will also be imported, with diesel comprising the bulk of these imports.
Currently, diesel is transported from Chattogram’s Patenga port to Godnail and Fatullah depots via river, and then distributed to Dhaka by road. The new pipeline will eliminate the need for both river and road transport, significantly lowering fuel transport costs and environmental risks.
While the project’s operating and maintenance costs—including electricity and land rent—are estimated at Tk 900 million per year, the expected annual revenue stands at Tk 3.26 billion, resulting in net annual savings of Tk 2.36 billion. Officials estimate that the investment will be recovered in just 16 years.
The pipeline is also expected to curb widespread irregularities in river-based lighterage transport, particularly at the Godnail depot, which has long been a hotspot for fuel theft masked as unloading losses.
Initially estimated at Tk 2,861.31 crore, the project’s cost was later revised to approximately Tk 3,699 crore. The pipeline was constructed by the Bangladesh Army’s 24 Engineer Construction Brigade. Given the project’s successful completion, the Army has also been entrusted with building another pipeline to transport jet fuel from Godnail to Dhaka airport.
The pipeline spans a total of 237 kilometers, including 59 kilometers from Cumilla to Chandpur and an 8.5-kilometer stretch from Fatullah to the Godnail depot.