Kathmandu, Janaury 5
Nepal is gearing up to import petrol and kerosene through a pipeline for the first time, marking a significant milestone in the country’s petroleum supply system.
The infrastructure required to transport petrol and kerosene from Motihari in India to Amlekhgunj in Nepal has been completed, and testing is currently underway. “The necessary infrastructure for petrol and kerosene import is ready,” said Chandika Bhatt, Executive Director of Nepal Oil Corporation (NOC). “Testing is ongoing to prepare for internal market distribution through this system.”
Once testing concludes, the formal import process will begin, saving an average of Rs 2.5 per liter in transportation costs.
Majority of petroleum imports via pipeline
According to NOC data, 60 per cent to 70 per cent of Nepal’s petrol and diesel imports come through this route. Diesel imports via pipeline began on September 11, 2019. The current infrastructure expansion represents the second phase of the project, now including petrol and kerosene.
Testing includes loading pipeline-transported petrol onto tankers and installing security locking systems. During the trial phase, 5,500 kiloliters of petrol and 1,000 kiloliters of kerosene have already been imported.
In the first five months of FY 2081/82 BS (up to mid-December 2024), Nepal imported 472,807 kiloliters of diesel and 306,229 kiloliters of petrol. These figures represent the total volume of petroleum products brought into the country from various entry points.
Benefits of pipeline import
Bhatt highlighted several advantages of pipeline imports. “Reduced transportation costs will directly lower consumer prices by up to Rs 2.5 per liter. It will also curb leakage, minimise irregularities, and reduce environmental impact,” he said.
The pipeline system also enables the rapid import of large quantities of petroleum products during emergencies. The existing pipeline can transport 200,000 to 300,000 liters of petrol per hour. In contrast, importing oil via tanker from India to Kathmandu currently takes at least three days.
The Amlekhgunj depot, a key part of the system, includes newly constructed facilities such as two 4,100-kiloliter petrol tanks, two 205-kiloliter transmix tanks, automated loading systems, a pump house, and a laboratory. The depot has a diesel storage capacity of 18,000 kiloliters.
South Asia’s first cross-border pipeline
The Nepal-India Petroleum Pipeline is South Asia’s first international pipeline. It spans 69.2 kilometers, with all types of petroleum products transported through a single pipeline. The recent expansion to include petrol storage facilities cost over INR 1.28 billion.
With streamlined imports and distribution through the pipeline, Bhatt emphasised that consumers would benefit from improved services and more efficient petroleum supply management.
