Rs 10 billion Lothar depot to transform Nepal’s fuel distribution network

Summary

Nepal Oil Corporation has started building a nearly Rs 10 billion modern fuel depot in Lothar, Chitwan, with storage for petrol, diesel, kerosene and aviation fuel. The project includes extending the Amlekhganj pipeline and is expected to boost Nepal’s fuel security and reduce reliance on tankers.

Key Points
  • Nepal Oil Corporation has begun construction of a modern fuel depot in Lothar, Chitwan, at an estimated cost of nearly Rs 10 billion.
  • The depot will store 91,900 kiloliters of fuel and become Nepal’s largest fuel storage facility once completed.
  • The project includes extending the Motihari-Amlekhganj pipeline to Lothar, with Indian Oil Corporation funding the pipeline extension as a grant.
  • Officials say the new terminal will improve fuel supply management, cut transportation costs and reduce leakage, theft and contamination.
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