How India-Bangladesh Friendship Pipeline enhances energy connectivity between the two nations?

The India-Bangladesh Friendship Pipeline (IBFP) is a joint effort to transport high-speed diesel from the Numaligarh Refinery Limited in Assam, India to 16 districts in northern Bangladesh's Rajshahi and Rangpur divisions, with the aid of Bangladesh Petroleum Limited.

As per a report by ORF, the Numaligarh refinery has been providing petroleum products to Bangladesh since 2015, and currently, Bangladesh imports 60,000 to 80,000 metric tonnes of diesel from India via railway networks.

The IBFP will lower the transportation costs of each imported diesel barrel from the port cities of Chattogram and Mongla, decreasing it from US$ 8 to US$ 5.

The new cross-border pipeline, the first of its kind, stretches from Siliguri in West Bengal, India to the oil depot in Parbatipur upazila in the Dinajpur district of Bangladesh. It covers a distance of approximately 132 km, with only 5 km located in India, and the remaining 127 km situated in Bangladesh.

The pipeline has the capacity to transport 1 million metric tonnes of diesel per year, but initially, it will only provide Bangladesh with 250,000 tonnes of diesel annually, with plans to increase it to 450,000 tonnes.

Describing the pipeline as a new chapter in bilateral relations, PM Modi had stressed bilateral petroleum trade has crossed the $1-billion mark. “Reliable and cost-effective diesel supply will be especially beneficial for the agriculture sector. Local industries will also benefit,” he said.

Bangladesh Prime Minister Sheikh Hasina had informed that at present, the country imports 1,160 MW of electricity from India.

Since 2015, the Numaligarh Refinery has been providing petroleum products to Bangladesh. Presently, Bangladesh imports 60,000 to 80,000 metric tonnes of diesel from India through rail transportation. This is the second energy pipeline connecting India with its neighbouring countries.

The APJL unit located in Godda, Jharkhand, India provides 748MW of electricity to the nearby country. Another thermal power plant with a capacity of 800MW is expected to become operational soon, which will increase the amount of power being supplied.

Bangladesh has registered Indian Oil Corporation Ltd. as an official government-to-government supplier of refined petroleum products. Additionally, the Power Development Board of Bangladesh has signed an agreement with Adani Power Jharkhand Limited (APJL), a subsidiary of Adani Power Limited, to purchase 1,496MW of net capacity power from them.

The India-Bangladesh Friendship Pipeline project is noteworthy as it provides a sustainable, environmentally friendly, and cost-effective means of transporting High-Speed Diesel.

(With inputs from agencies)