China Petroleum Pipeline Bureau will construct the SPM on Sonadia Island in deep sea where large oil tankers will anchor, Additional Secretary to the cabinet division Mostafizur Rahman told the reporters after a meeting of the cabinet committee on Wednesday.
As per the latest project design, two large 36-inch pipelines would be built there to pump the oil to a storage facility on Matarbari Island in Maheshkhali.
One pipeline would pump crude oil and the other diesel.
At present, large tankers anchor in deep sea and smaller ships unload and bring the oil to storage facilities of ERL.
If installed, the pipeline would save the government Tk1,000 crore annually, said Mostafizur.
Of total cost of the project amounting Tk5,426.26 crore ,Chinese government has agreed to fund 79% of the cost on condition that a Chinese company will implement the project under the government-to-government (G2G) basis, according to the proposal.
An amount of Tk1,021.19 crore will be borne by Bangladesh government.