Bangladesh and China to Build Oil Pipeline

Bangladesh and China agree to move forward with an oil pipeline construction project.

Bangladesh has entered into an agreement with China for the construction of an 138-mile oil pipeline.

Under the terms of the agreement, storage tanks will be constructed on Bangladesh’s Moheshkhali Island, with Exim Bank of China providing the funding for the approximately $550-million project.

Currently, Bangladesh transports imported oil via ship-to-ship transfers onto small coastal tankers. Once finished, the project, which is expected to be completed by 2020, will save the country approximately $120 million annually.