Nepal Oil Corporation has accelerated the construction of infrastructure to bring petroleum products such as petrol and kerosene through a pipeline by the end of Bhadra (mid-September). With 75 percent of the second phase of the Motihari-Amlekhgunj Petroleum Pipeline Project completed, the corporation is preparing to complete the remaining work within the next three months to transport petrol and kerosene through the pipeline.

Chief of the Nepal Oil Corporation’s Madhes Provincial Office in Amlekhgunj, Binit Mani Upadhyay, stated that with the main tanks constructed under the second phase of the Motihari-Amlekhgunj Petroleum Pipeline Project, other technical works will be completed within three months to transport petrol and kerosene through the pipeline.

“Most of the major infrastructure construction under the second phase has been completed,” he said. “Under the second phase of the project, two petrol tanks with a capacity of 4,100 kiloliters each had to be constructed. So far, the construction of both tanks has been completed,” he said. “Overall, at the current pace of work, it will be completed within three months if the same momentum is maintained.”

Chief Upadhyay mentioned that the installation of the pipeline connecting to the petroleum storage is ongoing. “Some civil works and tasks related to electronics and IT are still pending,” he said. “Since the remaining work is also progressing rapidly, efforts are being made to complete it by the second week of Bhadra (Mid September) if possible.

Chief Upadhyay stated that bringing petrol through the pipeline will reduce transportation costs by three rupees per liter. “On one hand, the transportation cost will decrease by three rupees per liter, and on the other hand, environmental pollution will also be reduced,” he said. “Additionally, one billion rupees in annual transportation costs will be saved.” Currently, the corporation transports petrol and kerosene from Barauni, India, by tanker, while diesel is already being transported through the pipeline.

According to the office, two transmix tanks with a capacity of 250 kiloliters each are under construction, and work is ongoing on 24 fully automated petrol filling stations. For the infrastructure construction under the second phase of the Motihari-Amlekhgunj Petroleum Pipeline Project, the corporation had signed a contract with the Indian company Likhita Infrastructure Pvt. Ltd. According to the contract, the company was supposed to complete the necessary infrastructure construction by December 2023. The inauguration was scheduled for January 2024, but due to delays by the construction company, the second phase of the work has not been completed within the stipulated time frame.

According to the corporation, infrastructure construction is underway for pump houses, a state-of-the-art laboratory, upgrading the firefighting system, oil-water separator, PMSCC room, and more. Both the corporation and the Indian side have been building various infrastructures. For the implementation of the second project, the corporation is spending 1.54 billion INR to construct petrol tanks with a capacity of 4,100 kiloliters, a state-of-the-art laboratory, upgrade the firefighting system, and build 24 fully automated petrol filling stations.

Similarly, Indian Oil Corporation Limited is also spending 600 million INR to construct a tank with a capacity of 4,100 kiloliters, two transmix tanks with a capacity of 250 kiloliters each, and two firewater tanks with a capacity of 3,000 kiloliters each.

In 2015, the total cost estimated for the pipeline expansion, including both the first and second phases, was 2.75 billion INR. According to the plan, in the first phase, the Indian side would spend 2 billion INR, and in the second phase, Nepal would spend 750 million INR.

Although 2 billion INR was spent by India on the infrastructure construction in the first phase, the work for the second phase could not start immediately. As a result, the cost for the second phase of the pipeline expansion has increased to 1.54 billion INR.

According to the corporation, infrastructure such as pump houses, a state-of-the-art laboratory, an upgraded firefighting system, an oil-water separator, and a PMSCC room is being constructed. Both parties are currently working on various infrastructure projects. The first phase of the work was completed, and since Bhadra 25, 2076 (September 11, 2019), diesel has been imported through the pipeline.