Infrastructure
The second phase of work under the Nepal-India Cross-Border Petroleum Pipeline Project has progressed.
The construction of infrastructure, including a gasoline tank and a 'transmix' tank, started at the Nepal Oil Corporation's Amalekhgunj depot in Bara.
On Wednesday, Pradeep Kumar Yadav, Chief of NOC Amalekhgunj, told reporters that construction work had begun after all necessary preparations.
Two petrol tanks with a capacity of 4,100 kilolitres, two transmix tanks with a capacity of 250 kilolitres, 24 automatic re-fillers, a pump house and a lab would be constructed under the project.
Likhita Infrastructure Pvt Ltd has been contracted to build all infrastructure within a year.
The project is co-funded by Nepal Oil Corporation and Indian Oil Corporation. "NOC will contribute around Rs1.54 billion and IOC will invest around Rs750 million," Yadav added. The project's completion in December will allow it to be operational by the beginning of 2024.
Once the project is completed, petrol will be pumped to Nepal via the pipeline. Only diesel is coming through the pipeline. While petrol and kerosene can be pumped through the same channel, Nepal imports petroleum products via tankers due to storage constraints.
After the completion of the project, all petroleum products will be supplied through the pipeline.
According to Yadav, this will cut technical losses, environmental pollution and transportation costs, saving Nepal roughly Rs 150 million each year. This would enhance the storage capacity of the Amalekhgunj depot for diesel to 24,840 kilolitres and petrol to 16,630 kilolitres.
The process to install two tanks - each with a storage capacity of 5,000 kilolitres of petroleum products - has started in line with the government's policy to keep them for 90 days, he said. Religare Construction Pvt Ltd has won the contract for the project.
