BPC signs deal with CPP to set up SPM project
State-owned Bangladesh Petroleum Corporation (BPC) signed a contract with Chinese firm China Petroleum Pipeline Bureau (CPP) to implement ‘Single Point Mooring (SPM) with Double Pipeline’ project.
BPC director (P&D) Mozammel Haque and CPP president Zhao Yujian signed the contract on behalf of their respective sides.
As per the deal, Chinese state-owned CPP will set up the project as EPC (engineering, procurement and construction) contractor at a cost of $550.40 million excluding VAT and other duties in next 36 months.
Under the project, a total of 220 km pipeline would be installed in the Bay of Bengal to directly receive crude petroleum from deep sea vessels to the Eastern Refinery, the country’s only refinery in the public sector.
At present, the crude oil carrying large vessels are anchored in the deep sea area and BPC uses some lighterage vessels to transport the raw petroleum to the ERL.
Addressing the contract signing ceremony at a city hotel, state minister for power and energy Nasrul Hamid directed the officials of his ministry to process all the projects within a month or two in order to complete their implementation in the next two years ahead of the general election scheduled for 2019.
Explaining the necessity of the project the state minister said this project will annually save Tk 1,000 crore of the BPC as it does not need to use lighterage vessels to transport the raw petroleum.
He said that the SPM could be effectively used by the private sector importers as well.
According to a statement of the BPC, the total cost of the project was estimated at Tk 5426.26 crore where the Chinese Exim Bank will finance Tk 4293.12 crore and the Bangladesh government will provide Tk 1021.19 crore and the remaining Tk 111.95 will be invested by BPC from its own fund.