KATHMANDU, August 20: Nepal Oil Corporation (NOC) has started construction of two storage tanks to stock petrol transported via cross-border pipeline system at its Amlekhgunj depot.
The 76-km long petroleum pipeline that connects Motihari of India to Amlekhgunj of Nepal came online in September 2018. Over the period, NOC has been importing only diesel through the pipeline system.
The construction of a storage tank will facilitate NOC to import petrol also by using the pipeline system. NOC is constructing the storage tank with the technical support of Indian Oil Corporation, the sole supplier of petroleum products to NOC.
Pradeep Yadav, Chief of NOC’s depot in Amlekhgunj, said the estimated cost of storage tanks is Rs 1.30 billion. According to him, the state-owned oil monopoly is constructing two storage tanks, each with capacity to stock 4,100 kiloliter of petrol in the area.
The NOC is also constructing 24 loading-filling sets, equipped with an advanced technology, to load and unload petroleum products in tankers. A testing lab to ensure qualities of the imported petroleum products is also being constructed in the area.
Currently, the NOC’s depot in Amlekhgunj can stock 19,000 kl of diesel and 2,100 kl of petrol. The cross-border pipeline imports diesel at an average of 250 kl per hour. The extended storage capacity and optimum use of the petroleum pipeline are expected to check pilferages in petroleum import that has been causing a huge financial loss to NOC.