Bangladesh has awarded China Petroleum Pipeline Bureau (CPP) a US$694 million contract to build a ship-to-shore crude oil pipeline.
CPP, a subsidiary of China National Petroleum Corporation (CNPC), will construct an oil tanker mooring platform and a 146-km pipeline under the Bay of Bengal to the coast, as well as 74 km of onshore pipeline to connect new storage tanks with the country’s only refinery at Chittagong.
The deal was finalised during the Chinese President Xi Jinping’s visit to Bangladesh in October last year.
China will pay for 80 per cent of the cost of the project, funded by the China Export Import Bank.
The project is expected to be completed in late 2018.
It is the latest overseas pipeline contract for CPP, after it completed a 1.5 million bpd oil pipeline in the UAE in 2011, and its involvement with India’s east-west gas pipeline project.