Nepal | August 13, 2020

NOC to enhance fuel storage capacity by 15 per cent this fiscal

Himalayan News Service
Share Now:


Nepal Oil Corporation (NOC) has initiated the fuel storage capacity enhancement project with a target to raise the storage capacity of petroleum products in the country by at least 15 per cent by the end of the ongoing fiscal year.

The country today has fuel storage capacity of 70,000 kilolitres which includes the storage capacity of petrol, diesel and aviation turbine fuel (ATF). Surendra Poudel, managing director of NOC, informed that works have been initiated to raise the fuel storage capacity to 80,500 kilolitres by end of fiscal 2020-21.

Following the acute shortage of fuel in the domestic market in early 2016 owing to the supply obstruction in the southern border, the government had announced it would expand the country’s fuel storage capacity so as to cater to the domestic demand for at least three months. However, the government failed to materialise its plan as NOC faced land acquisition corruption scam. The project fell under low priority of the government and NOC since then.

“Though the project was halted due to various reasons in the past, we have given momentum to the project in the recent months as enhancing fuel storage capacity is of utmost necessity. However, NOC plans to enhance the capacity by only 15 per cent initially,” informed Poudel.

As per him, tender process to build storage facilities for 10,000 kilolitres of diesel in different parts of the country is currently underway. Similarly, development of a facility to store 350 kilolitres of petrol is underway in Chitwan.

With regards to ATF, NOC is developing a 200-kilolitre storage tank in Pokhara. “The detailed project report of all these storage projects have been completed and will enter tender process soon,” he said.

Meanwhile, NOC and Indian Oil Corp (IOC) are also working on developing fuel storage tanks to stock 60,000 kl of fuel in Jhapa and 100,000 kl in Chitwan.

In case of liquefied petroleum gas (LPG), Poudel informed that NOC is in the final stage of hiring a consultant for developing LPG storage in Dhanusa. Though Nepal has limited storage capacity for diesel, petrol and ATF which can meet the market demand for almost one week, it does not have any LPG storage capacity so far.

Earlier, the government had also planned to build fuel storage tanks with assistance from China and enhance the storage capacity of existing fuel depots. Moreover, NOC had already identified Khaireni of Tanahu, Battar of Nuwakot and Panchkhal of Kavre as possible sites for the development of fuel storage facilities under Chinese assistance. However, this plan has witnessed no progress.

A version of this article appears in e-paper on July 28, 2020, of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Coronavirus vaccine: Russia ahead on track, who is next?

KATHMANDU: Over 150 vaccines are being developed and tested around the world to stop the COVID-19 pandemic, of which 28 are in human clinical trials, according to the World Health Organization. Meanwhile, Russia has become the first country in the world to grant regulatory approval to a COVID-19 Read More...

Coronavirus found on Ecuador shrimps in China, state media says

BEIJING: A city in China's eastern Anhui province found the novel coronavirus on the packaging of shrimps from Ecuador, state media reported on Wednesday, in the latest instance of the virus being detected on imported products. The coronavirus was found on the outer packaging of frozen shrimps Read More...

Nepal's COVID-19 tally crosses 24,000 with 484 new cases detected today

KATHMANDU: The Ministry of Health and Population has recorded 484 new cases of coronavirus infection on Wednesday, taking the nationwide count to 24,432. The new infections were confirmed after testing 10,481 specimens through PCR method in the last 24 hours. Among the new cases, 138 have been Read More...

Nepal COVID-19 Update: 484 new cases, 64 recoveries, eight deaths reported Wednesday

KATHMANDU: Nepal’s Health Ministry, in its regular press briefing, shared the latest updates on coronavirus contagion from across the country, and government’s response to the health crisis. As of today, 473,179 tests through Polymerase Chain Reaction (PCR) method have been carried out wh Read More...

Postal Highway Project: Construction work comes to halt with non-payment issues in Birgunj

BIRGUNJ: The widening work of road section from Birgunj to Sedhawa has come to a halt since the Postal Highway Project has withheld the payment of bills. The construction company engaged in the road widening project stated that the work came to halt due to lack of sources as the Postal Highway Di Read More...

Nepal sees highest Covid-19 death toll in a single day; eight deaths reported Wednesday

KATHMANDU: Nepal has logged eight more Covid-19 related fatalities in the last 24 hours. This is the highest single day death-toll from the coronavirus infection recorded so far. Spokesperson at Ministry of Health and Population, Dr Jageshwar Gautam, informed public about the eight cases of fatal Read More...

Worldwide coronavirus cases cross 20.41 million, death toll over 742,000

At least 20,414,289 people have been reported to be infected by the novel coronavirus globally and 742,207 people have died, a Reuters tally showed.  Infections have been reported in more than 210 countries and territories since the first cases were identified in China in December 2019.  Read More...

Pandemic and State: How is state accountable?

COVID-19 Global Lens The COVID-19 pandemic presents the world with a huge challenge: everyone and every area is affected, and the response has to be both quick and consorted. This pandemic may be primarily a health crisis for some states, but COVID-19 is also an education crisis, an employment an Read More...