India Halts Fuel Pipeline Extension Project in Bangladesh Following Political Unrest

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India Halts Fuel Pipeline Extension Project in Bangladesh Following Political Unrest

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Flags of Bangladesh and India (© Shutterstock/NINA IMAGES)
Flags of Bangladesh and India (© Shutterstock/NINA IMAGES)

The Indian government has indefinitely suspended the construction of the India-Bangladesh Friendship Pipeline (IBFP) in light of ongoing political instability in Bangladesh.

The pipeline, which was designed to transport diesel from India to Bangladesh, was set to be extended beyond its current terminus in Parbatipur, before violent protests erupted in Bangladesh, prompting then Prime Minister Sheikh Hasina to resign and flee to India.

Following political uncertainties in Bangladesh, the Indian government has decided to pause these expansion plans until the situation in Bangladesh stabilizes.

 “Given the recent political developments, India has decided to wait for a more favorable environment before proceeding with any further extensions to the pipeline,” a government official familiar with the project stated.

The IBFP, inaugurated in March 2023, connects Siliguri in West Bengal, India, to Parbatipur in Dinajpur district, Bangladesh. With a capacity of 1 million metric tonnes per annum (MMTPA), the pipeline currently supplies diesel to seven districts in northern Bangladesh.

India had also been considering sending high-sulfur fuel oil (HSFO) and furnace oil to Bangladesh through the pipeline. However, these plans have been put on hold until a stable government takes shape in Bangladesh.

The suspension of the pipeline project comes as Bangladesh faces significant political unrest. The country's government has been accused of cracking down on protests, leading to widespread violence and casualties. These developments have hurt various sectors, including the energy sector.

Despite the suspension of the pipeline project, India remains committed to supporting Bangladesh's energy needs and continues to explore alternative options to ensure a reliable and sustainable energy supply to the neighboring country.