NOC advances NPR 24.5 billion pipeline project

Kathmandu, January 8 — The Nepal Oil Corporation (NOC) is preparing to import petrol and kerosene through the existing Motihari-Amlekhgunj pipeline, which currently handles the import of diesel.

The corporation has announced that it is conducting tests for the inclusion of petrol and kerosene in the pipeline's operation.

The first phase of the pipeline was completed with the import of diesel on September 10, 2019 (24th Bhadra 2076), and the second phase of work is now nearly finished.

According to NOC spokesperson Manoj Thakur, testing is expected to be completed within a week, after which petrol and kerosene imports will begin immediately.

"Testing is ongoing and will continue for another week. Once testing is completed, we are ready to begin regular imports of diesel, petrol, and kerosene as required," said Thakur.

As part of the second phase, the construction of petrol tanks, fire systems, and other physical infrastructure has been completed, and testing has been conducted.

During this testing phase, around 5,500 kiloliters of petrol have been successfully imported via the pipeline, and 1,100 kiloliters of kerosene have also been tested.

24.5 billion investment for two pipelines

Thakur also revealed that the NOC is advancing the construction of two pipelines under the Petroleum Pipeline Project, one international and one domestic, with a total investment of NPR 24.5 billion.

The construction of these pipelines was initiated following a Business-to-Business (B2B) agreement between the Nepal Oil Corporation and the Indian Oil Corporation (IOC). The B2B agreement was signed on October 3, 2024 (17th Ashoj 2081) in New Delhi.

Earlier, during the official visit of Prime Minister Pushpakamal Dahal "Prachanda" to India on May 31, 2023 (17th Jestha 2080), a Government-to-Government (G2G) agreement was reached, leading to the formation of a committee in Nepal and the preparation of a draft for the B2B framework.

Following the B2B agreement, the process for the construction of the pipelines and two smart greenfield terminals has been initiated.

Both the NOC and IOC have set up four-member Steering Committees to oversee the progress.

According to Thakur, the Steering Committee from NOC is led by Market Director and Deputy Executive Director Engineer Birendra Goit, while IOC's Country Manager Nirupama Raijyad has been appointed to lead the committee from the Indian side.