The state-owned petroleum monopolist has so far been distributing LPG to bottling companies from Barauni, Haldia and Mathura of India.[break]
“The demand for LPG has been going up sharply in recent years. We see no alternative to this fuel for the next ten years. That is why we are planning to set up a storage plant in Chitwan to ensure smooth distribution of LPG to bottling companies across the country,” Digambar Jha, the managing director of NOC, told Republica.
Jha said NOC will approach either local private sector investors or international investors to operate the storage plant under Public Private Partnership (PPP) model. “As the proposed plant needs huge investment and sophisticated technology, we are thinking of joining hands with private sector,” he added.
The proposed plant will have the estimated capacity of 8,000 tons. NOC has decided to build the plant in Chitwan as most of the bottling companies are located in Chitwan and Dhading districts.
The plant will store LPG by maintaining propane and butane gas temperature by embracing state-of-the-art technology to avoid accidents.
“We are soon inviting experts from Indian Oil Corporation (IOC) to estimate the total cost and technical aspect of the plant,” Jha added.
NOC sources informed Republica that LPG will be distributed to bottling companies through diverted method - under which gas is supplied to bottling companies upon arrival from India -- and storage method under which gas in the plant is distributed.
Gas companies will undertake the responsibility of distributing LPG across the country after receiving gas from Chitwan. “NOC won´t be liable after companies receive supply from the plant,” Jha added.
Meanwhile, NOC is preparing to import kerosene and aviation fuel from Siliguri of India. It is also preparing to construct storage tanks for aviation fuel in Bhadrapur and Janakpur. Likewise, the state-owned petroleum monopolist is also setting up new sales depots at Char Ali of Jhapa and Surkhet. It is shifting its existing depot at Dhangadhi to expand its capacity.
Keeping in view frequent disruption in supplies and rising demands for petroleum products, NOC is planning to maintain minimum stock for at least a month in Kathmandu Valley and at least a week for cities outside the valley.
The demand for diesel shot up to 612,000 KL during the fiscal year 2009/10, from 466,000 KL recorded a year earlier. Similarly, petrol demand also surged to 162,000 KL in the review year from 124,000 KL a year earlier.
“Though we have plans to import fuel by rail wagon and through pipeline from India in the future, we immediately have no alternative to improving storage capacity and adding depots to ensure smooth supplies of petroleum products,” Jha added.
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