Birgunj, Oct 24: Nepal Oil Corporation (NOC), the sole petro importer in the country, is set to start importing petrol through the Motihari-Amlekhganj petroleum pipeline project within one and a half months.
The corporation has already brought in 5,500 kiloliters of petrol through the pipeline on Ashoj 17 for necessary technical testing.
Pralayankar Acharya, the head of the NOC’s regional office in Amlekhganj, stated that the infrastructure for the second phase of the Motihari-Amlekhganj pipeline project has been completed, and testing is currently underway.
Currently, the NOC is importing diesel only through the pipeline.
He mentioned, “All major construction work under the second phase has been completed. We are currently testing the effectiveness of the equipment after bringing 5,500 kiloliters of petrol through the pipeline for testing on Ashoj 17. We expect to complete the testing within one and a half months, allowing us to commercially transport petrol via the pipeline, just like diesel.”
According to NOC, two petrol tanks with a capacity of 4,100 kiloliters and other infrastructure under the second phase have already been constructed. Acharya emphasized that the technical inspection of the equipment and infrastructure constructed under the second phase is being expedited. Testing of the petrol tanks, motors, pumps, pipeline, and automated petrol filling stations is ongoing.
The corporation estimates that bringing petrol through the pipeline will save nearly Rs 100 million in transportation costs at the rate of Rs 3 per liter. “Currently, we are importing petrol and kerosene by tanker from Barauni, India,” he added. “Transporting petrol through the pipeline will help save on both transportation costs and environmental pollution.”
NOC had contracted Indian company Likhita Infrastructure for the construction of the second phase of the Motihari-Amlekhganj petroleum pipeline project. As per the contract, the company was required to complete the necessary infrastructure by December 2023, with an inauguration scheduled for January 2024. However, due to delays by the construction company, the completion of the second phase has taken over a year longer than the stipulated timeline.
According to NOC, infrastructure such as the pump house, state-of-the-art laboratory, upgraded fire-fighting system, oil-water separator has been constructed. Both NOC and the Indian side were responsible for various infrastructure developments in Amlekhganj.
For the implementation of the second phase project, Rs 1.54 billion has been spent, leading to the construction of a petrol tank with a capacity of 4,100 kiloliters, a state-of-the-art laboratory, upgrades to the fire-fighting system, and 24 fully automated petrol filling stations.
Similarly, Indian Oil Corporation Limited has taken responsibility for constructing a 4,100 kiloliter tank, two 250 kiloliter transmix tanks, and two 3,000 kiloliter fire water tanks, spending Rs 600 million on these developments.
The total estimated cost for the first and second phases of the pipeline expansion is Rs 2.75 billion. Initially, it was planned that the Indian side would cover Rs 2 billion for the first phase and Nepal’s side would contribute Rs 750 million for the second phase.
Despite the Indian side spending Rs 2 billion on the first phase, work on the second phase could not commence immediately, resulting in the cost of the second phase increasing to Rs 1.54 billion. The import of diesel through the pipeline has been ongoing since September 10, 2019. #petrol #pipeline #nepal
