NOC to build new fuel depot in Rupandehi

Kathmandu, Aug. 21: Nepal Oil Corporation (NOC) is set to construct a new fuel depot with modern facilities on the banks of Rohini River in Rupandehi at a cost of almost  Rs. 6 billion. 

The currently operating depot in Bhalwari is narrow, in a densely populated area and unable to meet the current demand for petroleum products, so a new depot is going to be constructed in Rohani and Omsatiya rural municipalities of Rupandehi in an area of about 25.5 bighas of land.

The Detailed Project Report (DPR) of the new depot, prepared by the Kathmandu Uniconsult Centre, Kathmandu University, was officially handed over on Wednesday. 

Kumar Baral, Chief of the Finance Division at Kathmandu University, presented the DPR to Engineer Pradip Kumar Yadav, Chief of NOC’s Storage Capacity Expansion Project amidst a function today.

As per the DPR, the depot will be constructed at a total cost about of Rs. 5.79 billion (excluding taxes). 

A total of 18,688 kiloliters of petroleum products---diesel, petrol and kerosene---will be stored in the depot, said engineer Yadav.

Under this, storage tanks with a capacity of 13,500 kiloliters for diesel, 4,960 kiloliters for petrol and 228 kiloliters for kerosene will be constructed. 

The new storage depot will meet the demand for fuel in Lumbini Province up to one month, he said.

According to the DPR, three vertical tanks with a capacity of 4,500 kiloliters each will be constructed for diesel storage. Similarly, two vertical tanks with a capacity of 2,100 kiloliters each and one vertical tank with a capacity of 760 kiloliters will be constructed for petrol, and three vertical tanks with a capacity of 76 kiloliters each will be constructed for kerosene.

He said that two water tanks with a capacity of 2,100 kiloliters each will be constructed inside the depot for the fire safety system. A total of 4,200 kiloliters of water will be stored. 

A total of 8 'ways' will be constructed in the fuel loading shed and 8 'ways' will be constructed in the unloading shed.

According to the corporation, the fully automation-based depot will have storage houses, piping construction for the flow of petroleum products and fire-fighting systems, electrical work, administrative buildings, control buildings, laboratory buildings, office chief and employee 

residences, and other structures.

Depot to be constructed within three years

Engineer Yadav said that with finalising the DPR, the construction will be started from December 2025 by inviting bids in October this year. 

The target is to complete the construction within three years of the start of the construction, he said.

He said that as the project will be constructed under the Engineering, Procurement and Construction (EPC) model, even if there was a delay in the construction of the project, the cost of the project would not increase.

However, he said that no effort would be spared to complete the project within the stipulated time frame.

Yadav said that the currently operating Bhalwari depot does not meet international safety standards and the depot is being shifted to the Rohini and Omsatiya rural municipalities due to limited space to expand the storage capacity.

Currently, the Bhalwari depot has storage tanks with a capacity of 519 kiloliters of petrol, 3,040 kiloliters of diesel and 280 kiloliters of kerosene. 

Dr. Bivek Baral, head of Kathmandu Uniconsult Centre, Kathmandu University, said that Nepali engineers are capable of designing and constructing mega infrastructure, including petroleum.

Sushil Bhattarai, a petroleum expert at Kathmandu University, and former executive director of Nepal Oil Corporation, said that there is a need to relocate the depot as there is no way to expand the storage capacity in Bhalwari. 

“There is storage in Bhalwari to meet the demand for two/three days. Currently, fuel is being transported from Amlekhgunj to Bhairahawa. If the highway is blocked for some reason, the supply chain of Lumbini Province may be affected,” he said. “A new depot has to be built to expand the storage capacity.”

Bhattarai said that there is also space for the construction of an aviation fuel storage depot at the currently proposed location, if necessary, once Bhairahawa Airport is fully operational.

He stressed on the need of expansion of fuel storage depots in all seven provinces to meet the demand of petroleum products.

The Corporation had signed an agreement with Kathmandu University on November 27, 2024 to prepare a DPR for the construction of a new fuel depot.

The NOC has already purchased 11.5 bighas of land in Rohini and Omsatiya rural municipalities for the construction of the depot. 

It said that the process of bringing an additional 8.5 hectares of land in the area under the ownership of the Corporation has been initiated.

In-principle approval has been received from Rohini and Omsatiya rural municipalities for the construction of a fuel depot at the site. 

The Corporation said that 97 locals who are occupying the land on the river banks have expressed their written consent and commitment to provide necessary support and coordination for the construction of the depot.