The Indian Oil Corporation (IOC) of India has begun the construction process for two petroleum pipelines and a greenfield terminal in Nepal. To ensure smooth supply of petroleum products in Nepal, the process has advanced for building two petroleum pipelines—one from Siliguri in India to Charali in Jhapa, and another from Amlekhgunj in Bara to Lothar in Chitwan—as well as a greenfield terminal (storage facility) in Jhapa. According to Manoj Kumar Thakur, Deputy Director and Spokesperson of the Supply and Distribution Department of Nepal Oil Corporation, detailed project reports (DPR), environmental impact assessments (EIA), and site clearance procedures are already underway. Spokesperson Thakur said, “The next step is the tender process, after which the construction work will begin. For this, IOC has requested six months’ time.”
The land filling, boundary wall construction, and other preparatory work at the site for the greenfield terminal in Jhapa are being carried out with the intention of handing it over to IOC. That work is also progressing. “We are preparing to call for tenders within a month,” said Spokesperson Thakur.
Soil testing at the proposed pipeline route has already been completed, and soil testing is currently underway at the terminal construction site, he added. The route survey and soil testing for the pipeline in Chitwan have also been completed. However, the geotechnical survey to be conducted by IOC is still pending. Since some land acquisition is required in that area, the Chitwan District Administration Office has already issued a notice on Baisakh 10 (April 23), according to Thakur. IOC has stated that it will take six months to complete the detailed design work.
He stated that a meeting of the Operations Committee will be held at the end of May in the presence of officials from both IOC and Nepal Oil Corporation. “In that meeting, there will be an extensive discussion on the progress made so far in Jhapa and Chitwan, and the next steps to be taken,” he said.
According to Surendra Mahato, Chief of the Siliguri–Jhapa Petroleum Pipeline Project, work on the project in Jhapa began in the current fiscal year 2081/82 (2024/25). A meeting with Mechinagar Municipality has already been held as part of the first phase regarding the Environmental Impact Assessment (EIA) for the pipeline expansion from Mechi Bridge in Kakarbhitta to Charali.
Project Chief Mahato said, “Currently, the construction of the Asian Highway is ongoing. During the initial route survey, there weren’t many culverts and bridges along the road, but now multiple culverts and bridges are being constructed at various locations, which has created some challenges for pipeline expansion.”
The pipeline route has been planned to run along the edge of the road. To resolve the issues arising from this, a technical team from IOC has arrived in Jhapa and is currently conducting a new survey in coordination with the Department of Roads, according to Project Chief Mahato. He stated that if there had been no issues with culverts and bridges on the Asian Highway, IOC would have already proceeded with the tender process in the case of Jhapa. However, due to the need for a revised route survey, the pipeline expansion has been delayed.
The Siliguri–Jhapa pipeline extension will be approximately 50 kilometers long. Of this, 35 kilometers will lie within Indian territory (from Siliguri to Panitanki) and 14.6 kilometers within Nepali territory (from Kakarbhitta to Charali), he said. “Once the pipeline is constructed, the country will save a significant amount on transportation costs,” he added. “After five depots are built at the Charali storage site, fuel supply across all 14 districts of Koshi Province will become more efficient.”
The government had initiated the Siliguri–Jhapa pipeline project back in 2074 B.S. (2017 A.D.). That same year, Nepal Oil Corporation purchased 23 bighas, 3 kathas, and 13 dhurs of land from local individuals in Mechinagar Municipality-13 for the construction of the storage facility.
In the presence of former Prime Minister of Nepal Pushpa Kamal Dahal (Prachanda) and Indian Prime Minister Narendra Modi, Nepal’s Minister for Industry, Commerce, and Supplies, Ramesh Rijal, and India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, signed an agreement for the two pipelines in Jestha 2080 B.S. (May–June 2023).
The agreement states that the two pipelines and one terminal will be constructed with investment and technical support from Indian Oil Corporation (IOC). Out of the total estimated cost of NPR 26.93 billion for the two pipelines and two terminals, India will invest approximately NPR 17 billion.
Source: Annapurnapost
