The state-owned petroleum monopolist stepped up its activity in this connection after the cabinet approved its proposal to go ahead with the project under a separate ownership-joint operation model, dropping the previous idea of a joint-venture. [break]
“NOC will now construct 39 kilometers of the pipeline on the Nepal side of the border with IOC´s technical input and supervisory role for the safety and other aspects of the project,” said NOC chief Digambhar Jha.
IOC, for its part, will construct a two-kilometer pipeline system on the other side of the border and install pumping stations in Raxaul.
As the pipeline on both sides of the border will function as a single system, the two corporations have agreed to operate it jointly under a bilateral Pipeline Treaty.
“We have already communicated with IOC to send a team for a final field visit and specify the legal and technical things NOC needs to do from its side, so that we could complete all necessary paper work at the earliest and kick-start the project,” Jha told myrepublica.com.
Jha, who recently met senior IOC officials, added that the Indian corporation has responded positively to NOC´s call.
The cross-border pipeline project was first proposed by IOC about a decade ago and the two sides had agreed to execute it as a joint venture (JV). But they switched to a separate ownership-joint operation model after IOC said the JV model would not help in its effective operation.
Studies reckon the pipeline will reduce Nepal´s fuel transport cost by 40 percent, which in turn will greatly relieve consumers. It will also generate additional revenue for the government, reduce technical loss, oil theft, and road deterioration, besides making supplies cleaner and cheaper. Most importantly, it is expected to end fuel shortages that hit the market again and again.
“Under the new project design, NOC and IOC will now invest a total of Rs 1.60 billion for laying the 10.7 inch pipeline system on their respective sides of the border,” said Jha.
The pipeline will be constructed some 1 to 1.2 kilometers eastward of the Tribhuvan Highway and will run parallel to it.
In the detailed project report NOC proposed to lay the pipeline some 1.5 meters below the ground and suggested deputing a guard for every two to three kilometers to monitor the system.
The main pumping station of the pipeline system will remain in Raxaul. The system, identified as appropriate by IOC, will pump 3,000 kiloliters (KL) of fuel in one batch at a speed of 294 KL per hour.
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