How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics

[Black_cats]

How India’s pipelines to Bangladesh, Nepal are changing oil trade dynamics
Pratim Ranjan Bose Updated on September 19, 2019

While the network has secured supplies to Nepal, it may boost trade volumes with Dhaka

www.thehindubusinessline.com/economy/how-indias-pipelines-to-bangladesh-nepal-are-changing-oil-trade-dynamics/article29452152.ece/amp/

In September 2018, India and Bangladesh entered 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. One year down the line, the project is gaining speed.

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

Meanwhile, the Bangladesh government is expected to notify landowners for right-of-way for the underground line. Of the 130-km long pipeline only six km is in India. The West Bengal government has already ensured the right of way. India is offering ₹303 crore financial assistance in completing the project that will largely meet the diesel requirements of northern parts of Bangladesh.

Bangladesh imported 4.8 mt of diesel in 2017-18. This includes 1-1.5 lakh kilolitre supplies by rail from India beginning 2016. In the absence of pipeline infrastructure, diesel is distributed mostly by river to the oil bunkers.

Oil diplomacy
The pipeline supply will therefore bring in major logistical change in auto-fuel distribution in Bangladesh. India is fast establishing pipeline network in the region. The beginning was made with Nepal as Delhi completed construction of 69-km Motihari (Bihar)-Amlekhigunj (Nepal) early this month.

The project was completed in half the scheduled time, eliminating roughly 1,000-1,200 road tankers which were earlier congesting the roads of Raxaul (Bihar) and Birgunj (Nepal). But more importantly, it ended a long pending political irritant.

During the 2015 Madhesi stir in southern Nepal, the protestors blocked the trading gate to cut off oil supplies. Nepal in turn blamed India for stopping the oil supplies. With oil now delivered 30 km inside Nepal and at a lower cost, the political narrative between the two countries is set to change.

POL exports
With Nepal dependent on Indian supplies for petroleum products naturally the Moti-Hari-Amlekhigunj pipeline will not have any impact on trade volume. But the reverse is true for Bangladesh. Petroleum products already started occupying space in the bilateral trade and its importance will increase in the days to come.

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

Published on September 19, 2019

 

[Samlee]

Back in 2013 There Was A Serious Attempt To Lay A Pipeline To Lahore To Export Petroleum Products But Then Modi Happened

 

[Aryan0395]

Back in 2013 There Was A Serious Attempt To Lay A Pipeline To Lahore To Export Petroleum Products But Then Modi Happened

You mean the same Modi who invited your prime minister to his swearing in ceremony? That same Modi who went to the wedding of your PM's daughter?
Yeah sure. Modi tried to develop relations the day he became PM.

 

[Samlee]

You mean the same Modi who invited your prime minister to his swearing in ceremony? That same Modi who went to the wedding of your PM's daughter?
Yeah sure. Modi tried to develop relations the day he became PM.

Nope 56' Inch Politics Is Not Good For Business

 

[Skull and Bones]

Back in 2013 There Was A Serious Attempt To Lay A Pipeline To Lahore To Export Petroleum Products But Then Modi Happened

But then again, we would have to supply oil on credit or deferred payments. We are not complaining here for this particular missed business opportunity.

 

[Samlee]

But then again, we would have to supply oil on credit or deferred payments. We are not complaining here for this particular missed business opportunity.

No You Wouldn't Have You Would Have Gotten Upfront Payment.Arranging The Money Was Our Headache.

And BTW Credit Terms Are Part of Normal Business Arrangements Nothing Unusual In That.

 

[Abu Shaleh Rumi]

Oil pipeline with india? fuk!

We need to start building our own refineries. It will create jobs for Bangladeshis and enrich the economy...

 

[Species]

I don't think the Numaligarh Refinery in Assam will sustain in the long term, it's a failed project even before the beginning, I mean who builds an oil refinery in a landlocked region without any presence of large oil fields? The tiny oil reserves in Assam must have already depleted or are near extinction. If you lay a long pipeline to connect it with the sea ports in Eastern India, it will just raise the logistical costs by manifolds.

India could supply Bangladesh from its refineries at Paradip in Orissa but Bangladesh has already started expanding its refinery capacity:

Unit two of Eastern refinery in Chittagong will raise its capacity from 1.5 MMTA to 4.5 MMTA
Bashundhara group is constructing a large refinery at Sitakund with a capacity of 4MMTA
There is also a refinery project at Payra in the preliminary stage with a capacity of 7.5 MMTA

These will raise Bangladesh's total refinery capacity to about 16MMTA against the demand of 6MMTA. Unless the Indian petroleum products become dirt cheap without compromising the quality, I don't think they will have a demand in Bangladesh.

 

[namefield_empty]

I don't think the Numaligarh Refinery in Assam will sustain in the long term, it's a failed project even before the beginning, I mean who builds an oil refinery in a landlocked region without any presence of large oil fields? The tiny oil reserves in Assam must have already depleted or are near extinction

The ignoramus strikes again!!

Assam accounts for more than one fourth of the total crude reserves of India and is the state with highest onshore natural gas production more that your Shonar Bongal will ever be able to achieve. Coupled with the abundant coal and hydroelectric potential it leaves BD far behind as far as resources are concerned.

https://en.m.wikipedia.org/wiki/Oil...ndia#Distribution_of_reserves_by_state/region

 

[Bilal9]

I don't think the Numaligarh Refinery in Assam will sustain in the long term, it's a failed project even before the beginning, I mean who builds an oil refinery in a landlocked region without any presence of large oil fields? The tiny oil reserves in Assam must have already depleted or are near extinction. If you lay a long pipeline to connect it with the sea ports in Eastern India, it will just raise the logistical costs by manifolds.

India could supply Bangladesh from its refineries at Paradip in Orissa but Bangladesh has already started expanding its refinery capacity:

Unit two of Eastern refinery in Chittagong will raise its capacity from 1.5 MMTA to 4.5 MMTA
Bashundhara group is constructing a large refinery at Sitakund with a capacity of 4MMTA
There is also a refinery project at Payra in the preliminary stage with a capacity of 7.5 MMTA

These will raise Bangladesh's total refinery capacity to about 16MMTA against the demand of 6MMTA. Unless the Indian petroleum products become dirt cheap without compromising the quality, I don't think they will have a demand in Bangladesh.

Kudos to you for the most important post of the week. Indians keep pushing to make us dependent on them, but these attempts must be rebuffed at every opportunity. And...we DO have the capability to do so.

 

[Species]

The ignoramus strikes again!!

Assam accounts for more than one fourth of the total crude reserves of India and is the state with highest onshore natural gas production more that your Shonar Bongal will ever be able to achieve. Coupled with the abundant coal and hydroelectric potential it leaves BD far behind as far as resources are concerned.

View attachment 580353 View attachment 580354

https://en.m.wikipedia.org/wiki/Oil...ndia#Distribution_of_reserves_by_state/region

These tiny reserves might look huge for you lot because you have always been jungle-dwelling primitive tribals who have never seen the light of industrialization but in reality they are just negligible for even a small sized economy.

Based on your links, Assam's gas reserves is about 5.6 TCF while in Bangladesh, Sylhet alone has a reserve of 7 TCF which is set to increase after the ongoing exploration efforts by BAPEX throughout the country. Not even talking about the total onshore reserves of Bangladesh (about 15 TCF remaining reserves from the total of 30 TCF), then there are offshore reserves as well.

Oil reserves of Assam stands at a mere 1.1 billion barrels, most of which have already depleted, that's tiny even for a small-sized economy, let alone India.

Assam is a financial burden on India period. This is why they are trying to integrate it with the economy of Bangladesh and Southeast Asia to at least make it minimally sustaining.

Kudos to you for the most important post of the week. Indians keep pushing to make us dependent on them, but these attempts must be rebuffed at every opportunity. And...we DO have the capability to do so.

Well, I have always wondered the feasibility of the pipeline project from Siliguri to Rangpur. They have given the reason that it's logistically more cost-effective to transport petroleum to Rajshahi/Rangpur from India than from Chittagong through rail/road but what about constructing a pipeline from our sea ports to North Bengal? If not from Chittagong, a pipeline from Payra or Mongla to Rajshahi would surely be feasible and I'm sure it will be implemented in near future since as I said the Numaligarh refinery wouldn't sustain in the long term.

 

[Bilal9]

Well, I have always wondered the feasibility of the pipeline project from Siliguri to Rangpur. They have given the reason that it's logistically more cost-effective to transport petroleum to Rajshahi/Rangpur from India than from Chittagong through rail/road but what about constructing a pipeline from our sea ports to North Bengal? If not from Chittagong, a pipeline from Payra or Mongla to Rajshahi would surely be feasible and I'm sure it will be implemented in near future since as I said the Numaligarh refinery wouldn't sustain in the long term.

Numaligarh has puny capacity of only 3 MMTA at this time. They took up plans to increase this to 9 MMTA at some point, but that is a long way off still..if wishes were horses - beggars would ride...

I don't know whether to laugh or cry, Bangladesh in a matter of a few years will have 16 MMTA of refining capacity like you said, and look at this backwoods insignificant Ahom moron jumping up and down with no substance....

 

[Species]

Numaligarh has puny capacity of only 3 MMTA at this time. They took up plans to increase this to 9 MMTA at some point, but that is a long way off still..if wishes were horses - beggars would ride...

I don't know whether to laugh or cry, Bangladesh in a matter of a few years will have 16 MMTA of refining capacity like you said, and look at this backwoods insignificant Ahom moron jumping up and down with no substance....

Most importantly, Numaligarh's source of crude oil, the tiny oil fields in Assam, is already near extinction and they are planning to lay a pipeline all the way down south to Paradip port in Orissa to import crude oil, imagine the logistical and maintenance costs. Now who would invest in such venture when one could just put money on the expansions of refineries at Paradip.

 

[kaykay]

These tiny reserves might look huge for you lot because you have always been jungle-dwelling primitive tribals who have never seen the light of industrialization but in reality they are just negligible for even a small sized economy.

Based on your links, Assam's gas reserves is about 5.6 TCF while in Bangladesh, Sylhet alone has a reserve of 7 TCF which is set to increase after the ongoing exploration efforts by BAPEX throughout the country. Not even talking about the total onshore reserves of Bangladesh (about 15 TCF remaining reserves from the total of 30 TCF), then there are offshore reserves as well.

Oil reserves of Assam stands at a mere 22 million barrels, that's peanuts even for a small-sized economy, let alone India.

Assam is a financial burden on India period. This is why they are trying to integrate it with the economy of Bangladesh and Southeast Asia to at least make it minimally sustaining.



Well, I have always wondered the feasibility of the pipeline project from Siliguri to Rangpur. They have given the reason that it's logistically more cost-effective to transport petroleum to Rajshahi/Rangpur from India than from Chittagong through rail/road but what about constructing a pipeline from our sea ports to North Bengal? If not from Chittagong, a pipeline from Payra or Mongla to Rajshahi would surely be feasible and I'm sure it will be implemented in near future since as I said the Numaligarh refinery wouldn't sustain in the long term.

LOL at your figures. Assam has around 180 MMT of known oil reserves(recent figures say even more). That means around 1200 million barrels. Now compare that to BD's 55-60 million barrels known reserve.

 

[Species]

LOL at your figures. Assam has around 180 MMT of known oil reserves(recent figures say even more). That means around 1200 million barrels. Now compare that to BD's 55-60 million barrels known reserve.

I stand corrected, 1.2 billion barrels is a pretty tiny reserve and most of which have already depleted which is why they are planning to lay a pipeline to Paradip to source crude oil, so that's nothing special.

Bangladesh relies on natural gas, and is the 8th largest producer of natural gas in Asia.