The agreement was signed in Dhaka by Bangladesh's Secretary of Economic Relations Department (ERD) Kazi Shofiqul Azam and Chinese Ambassador to Bangladesh Ma Mingqiang. According to the government of Bangladesh, the deal will contribute to balancing the country's energy supply and demand and ensure Bangladesh's energy security. The ERD pointed out that this is one of the 27 projects included in the memorandum of understanding signed between the two countries in October 2016. In December, Bangladesh reached an agreement with the state-owned China Petroleum Pipeline Bureau (CPP) for engineering, procurement, construction and installation of the pipeline. The Bangladeshi State Minister for Power and Energy, who witnessed the signing of the framework agreement on October 29, 2017, said the energy infrastructure will help speed up the supply process and reduce vessel fare and operational losses, with savings for Bangladesh of up to USD 12.5 million a year. The government of Bangladesh stated that the project will involve the construction of a diesel and crude oil storage tank in the Cox's Bazar district on Moheshkhali Island. The estimated cost of the entire project stands at USD 694 million.