State-owned Bangladesh Petroleum Corporation (BPC) wants Bangladesh Army as the Engineering, Procurement, and Construction (EPC) contractor to build a 250km fuel oil pipeline from Dhaka to Chittagong.
The pipeline is aimed at reducing transport costs and stopping pilferage of fuel.
"A consultancy firm - Engineers India Limited (EIL) is currently surveying the pipeline route," a BPC official said.
"We have taken up the project to save Tk150 crore spent annually on checking pilferage of fuel during transportation through river routes and highways, and to ensure fuel security," BPC Director (Pperations and Planning) Sayed Mohammad Mozammel Haque told the Dhaka Tribune on Saturday.
"We plan to complete land acquisition for the project by this month. The pipeline will supply imported fuel from Chittagong to Dhaka.
"The pipeline has been planned mainly to carry diesel from BPC's Chittagong tank terminal to Narayanganj's Godnail tank terminal with a separate delivery point in Chandpur," the BPC director added.
The estimated cost of the project is around Tk1,400 crore.
BPC is currently transporting petroleum products through tank-lorries owned by the private sector and the state-run Bangladesh Railways.
Oil tankers, mostly owned by the private sector, have also been carrying fuel oil through various river routes.
Currently, BPC imports about 1.3 million tonnes of crude oil and 4.2 million tonnes of refined oil while around 300,000 tonnes of petroleum products are received from different gas fields and private fractionation plants.