KATHMANDU: The Nepal–India cross-border petroleum pipeline has completed six years of operation, supplying the country with a significant portion of its fuel needs, Nepal Oil Corporation (NOC) officials said.
Since its inauguration, the 69.2-kilometre pipeline from Motihari in India to Amlekhganj in Nepal has transported a total of 634.92 million litres of petroleum products, according to the Madhesh Regional Office of NOC in Amlekhganj. Of this, 614.35 million litres were diesel, 20.15 million litres petrol, and 0.41 million litres kerosene, regional chief Pralayankar Acharya said.
Currently, the pipeline carries petrol, diesel, and kerosene from Motihari to Amlekhganj. The project was jointly inaugurated by then Prime Minister KP Sharma Oli and Indian Prime Minister Narendra Modi on 10 September, 2019. Diesel began flowing through the pipeline on the same day, while petrol was added on 10 October, 2024, and kerosene on 5 December, 2024.
Designed as a multi-product pipeline, it has helped meet around 70 per cent of Nepal’s petroleum demand. Fuel transported through Amlekhganj is distributed to depots in Kathmandu, Biratnagar, Bhairahawa, Thankot, Pokhara, Birgunj, and Janakpur, while also supplying local pumps. “Around 70 per cent of Nepal’s petroleum consumption is supplied via Amlekhganj,” Acharya said.
The pipeline can transport up to 6,000 kilolitres of petroleum products daily, though demand has not yet required operation at full capacity.
Under the first phase of the project, the pipeline was laid from Motihari to Amlekhganj. The second phase involved expanding storage capacity at Amlekhganj and installing automation systems. Four new vertical storage tanks were built to store petrol, diesel, and kerosene, alongside two Transmix tanks and a fire control system to maintain fuel quality.
The Amlekhganj depot, the largest and most modern in Nepal, now has a combined storage capacity of 94,000 kilolitres, with 17,500 kilolitres of petrol, 27,500 kilolitres of diesel, and 2,200 kilolitres of kerosene in the new tanks. The depot, spread over 67,724 square metres, was originally built in 1973–74 and began operations in 1976–77.
The government has also planned to expand storage capacity across all seven provinces to meet at least three months of local demand, with NOC implementing various expansion projects.
Pipeline transportation has eliminated road transport bottlenecks and reduced risks such as tanker accidents, fuel theft, adulteration, and environmental impacts, Acharya said. The shift to pipeline transport has also saved NOC around Rs 300 million annually in transport costs, allowing for lower fuel prices for consumers.
Meanwhile, the government has given national priority to the Siliguri–Charali and Amlekhganj–Lothar pipeline projects, along with a greenfield terminal. Construction of the Amlekhganj–Lothar segment has already started, with the 62-kilometre pipeline to run parallel to the East-West Highway. The new terminal in Rapti Municipality–1, Lothar, will cover 23 ropanis 12 aana and feature advanced storage facilities.
The pipeline will transport fuel at 273 kilolitres per hour, with annual capacity of 20 million tonnes. Lothar depot will have 11,000 kilolitres of petrol storage in three vertical tanks, 15,500 kilolitres of diesel in three tanks, 800 kilolitres of kerosene in two tanks, and 3,600 kilolitres of aviation fuel in three tanks, bringing total storage to 91,900 kilolitres. The entire project, including pipelines and storage facilities, is estimated to cost Rs 14.96 billion, with completion targeted within three years.
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