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NOC looking at possibility of extending petroleum pipeline to Chitwan

File image: Nepal Oil Corporation office

Kathmandu, September 13

Nepal Oil Corporation has started the process of extending the recently inaugurated India-Nepal petroleum pipeline to Lothar in Chitwan district. The pipeline to Amalekhgunj of Bara from Motihari of India was inaugurated by prime ministers of the two countries on Tuesday.

The corporation’s initial study states that the pipeline will be around 62 kilometre long.

NOC executive director Surendra Paudel says that the NOC had only recently completed the detailed engineering study on the route it had surveyed a year ago. “We have seen a possibility of extending the pipeline up to Chitwan. We are still assessing our options,” informs Paudel.

He also informs that the NOC has purchased nearly 40-acre land in Chitwan to construct a storage unit.

NOC deputy executive director Sushil Bhattarai hopes that the storage facility in Chitwan would help the NOC distribute petroleum to areas in the central Terai and hilly areas. He adds that NOC plans to use tankers for petroleum supply to western Nepal only.

“Kathmandu is near Chitwan. A few big cities which use fuel the most are also close to it. This storage will help us cut costs too,” Bhattarai adds.

While people are saying that it is pointless to spend on fuel storage facility as cars would go electric soon, Bhattarai says it would take a few decades for Nepal to have electric cars.

He adds that the Amalekhgunj pipeline would save up to Rs 1 billion per year and continued that if the pipeline was extended to Chitwan, the NOC would save even more money.

The NOC also informs that even Indian Oil Corporation is showing interest in the new pipeline project. There is a possibility that the IOC will help NOC construct the pipeline.

“We are still assessing the cost of the project. We’ll soon come up with a proper plan,” informs executive director Paudel.

 

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