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IOC to Spend INR 17 Billion to Construct 2 Petroleum Pipelines

India will spend over INR 17 billion to construct 2 petroleum pipelines and 1 greenfield terminal out of the 4 identified projects. IOC shall construct Siliguri-Jhapa Pipeline, Amlekhganj-Lothar Petroleum Pipeline, and the Jhapa terminal, while Nepal Oil Corporation will construct the Chitwan terminal.

May 26, 2023


India will be spending over INR 17 billion on the construction of 2 petroleum pipeline projects and a storage facility. The two projects include pipeline construction from Siliguri, India, to Jhapa, Nepal, and from Amlekhganj, Bara (Nepal), to Lothar, Chitwan, (Nepal). The projects have been in discussion between Nepal Oil Corporation and Indian Oil Corporation (IOC). 

Nepal Oil Corporation has identified four projects: Siliguri-Jhapa pipeline, the Amlekhganj-Lothar petroleum pipeline, and greenfield terminals at Lothar in Jhapa and in Chitwan. IOC will construct Siliguri-Jhapa Pipeline, Amlekhganj-Lothar Petroleum Pipeline, and the terminal at Jhapa under grants. The 62-kilometer Amlekhganj-Lothar petroleum pipeline is estimated to cost INR 274 crores; the 50-kilometer (35 kilometers in India and 15 kilometers in Nepal) Siliguri-Jhapa pipeline will cost INR 288 crores; the Jhapa terminal will cost INR 502 crores.

The Chitwan terminal shall be constructed by India and Nepal Oil Corporation will bear the cost of INR 618 crores. The corporation has already purchased land to build terminals. The fuel storage capacity of the Jhapa terminal will be 42,000 kiloliters and the Lothar terminal will be 103,150 kiloliters.

Mr. Pushpa Kamal Dahal, Prime Minister of Nepal, visited India on May 31, 2023. 

Also Read: Iraq Allocates USD 417 Million for Its 3rd Offshore Oil Export Pipeline

Mr. Ramesh Rijal, Minister for Industry, Commerce and Supplies of Nepal, who is also participating in the visit said, “The Government of India has agreed to build a petroleum pipeline under a grant. An agreement will be reached during the PM’s upcoming visit to India.”

India has helped Nepal build various petroleum pipelines. The Motihari-Amlekhganj petroleum pipeline, constructed by IOC, is already exporting diesel to Nepal. The pipelines help cut down transportation costs, maintain the purity of products, and control leakages, theft, and adulteration. 

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