KATHMANDU: Nepal Oil Corporation (NOC) has signed an agreement with Kathmandu University (KU) to prepare a detailed project report (DPR) for the construction of the Lumbini Regional Storage Facility in Rupandehi. The facility will be located in Omsatiya and Rohini rural municipalities.
At a signing ceremony held in Bhairahawa, Pradeep Yadav, Deputy Director of NOC and Head of the Storage Capacity Expansion Project, and Bibek Baral, Head of KU’s Consultancy Department, formalized the agreement.
KU is expected to complete the DPR within six months, enabling the depot’s construction to begin promptly thereafter.
NOC aims to relocate its existing depot at Bhalbari to the new facility by November 2025. Deputy Director Yadav stated that the shift is necessary to address the growing demand for petroleum products in the region.
The current Lumbini regional office, situated on approximately five and a half bigha of land along the Bhairahawa-Butwal highway, houses storage tanks with capacities of 519 kiloliters of petrol, 3,000 kiloliters of diesel, and 140 kiloliters of kerosene.
However, these capacities are insufficient, meeting only two days of petrol demand and five days of diesel consumption, highlighting the urgent need for expansion.
This initiative is part of NOC’s broader effort to increase its nationwide storage capacity. Last week, NOC partnered with Pulchowk Engineering Campus to prepare a DPR for relocating the aviation fuel depot currently located in the Tribhuvan International Airport complex in Kathmandu.
With a total petroleum storage capacity of 60,384 kiloliters spread across depots in Biratnagar, Dhanusha, Birgunj, Amlekhgunj, Kathmandu, Pokhara, Bhairahawa, Nepalgunj, and Dhangadhi, NOC is heavily reliant on imports.
Fuel is procured from the Indian Oil Corporation (IOC), India’s state-owned supplier, underscoring the importance of efficient storage to meet Nepal’s growing energy needs.
The new Lumbini depot is expected to significantly enhance storage and ensure a more reliable supply of petroleum products in the region.
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