Nepal | September 26, 2020

Expansion of petro pipeline to Chitwan feasible, says study

Himalayan News Service
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Kathmandu, September 13

A recent study carried out by the Indian Oil Corporation (IOC) has shown that it is feasible to extend the recently inaugurated Motihari-Amlekhgunj petroleum pipeline from Amlekhgunj to Chitwan, as per Nepal Oil Corporation (NOC).

“As NOC and IOC had been discussing on expanding the fuel pipeline to Chitwan, the IOC recently concluded a survey report which shows that it is feasible to expand the pipeline up to Lothar of Chitwan. However, plans are afoot to carry out yet another extensive study on expanding the fuel project,” informed Sushil Bhattarai, deputy managing director at NOC.

Prime Minister KP Sharma Oli and his Indian counterpart Narendra Modi had jointly launched a virtual inauguration of the much-hyped 69-kilometre-long Motihari-Amlekhgunj cross-border petroleum pipeline on Tuesday. As per NOC, the NOC and IOC plas to expand this pipeline from Amlekhgunj to almost 62 km away to Chitwan to facilitate the supply of fuel in the central Tarai and Hilly region of the country.

Moreover, NOC has already procured necessary land for the development of fuel storage facilities in Lothar.

“As Chitwan is close to major cities, including Kathmandu which consumes high amount of fuel, expansion of the fuel pipeline to Chitwan will ensure smooth supply of fuel in such regions,” added Bhattarai.

However, he said that NOC and IOC are still assessing the cost and modality of the project. “We will come up with a concrete plan of the project soon,” said Bhattarai.

Expansion of the pipeline project to Chitwan is expected to heavily reduce fuel transportation cost of NOC. The Motihari-Amlekhgunj pipeline project alone is expected to reduce fuel transport cost of NOC by more than Rs two billion annually.

NOC and IOC are planning to sit for discussions on expanding the pipeline to Chitwan soon.

 


A version of this article appears in print on September 14, 2019 of The Himalayan Times.


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