India

India’s pipelines to Bangladesh, Nepal changes oil trade dynamics

New Delhi: In September 2018, India and Bangladesh signed 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. After a year now, the project is gaining speed.

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

Of the 130-km long pipeline, only six km is in India. India is offering Rs 303 crore financial assistance for the speedy completion of the project that will largely neet the diesel requirements of northern parts of Bangladesh.

The pipeline supply will, therefore, bring in major logistical change in auto-fuel distribution in Bangladesh.

The project was started with Nepal as Delhi completed construction of 69-km Motihari (Bihar)-Amlekhigunj (Nepal) early this month. It eliminated roughly 1,000-1,200 road tankers which were earlier congesting the roads of Raxaul (Bihar) and Birgunj (Nepal).

With Indian refiners exploring markets in the entire neighbourhood, oil and oil pipelines are set to gain prominence in the future.

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