The Motihari-Amlekhgunj oil pipeline will be supplying only diesel initially for a certain period, according to Nepal Oil Corporation.
As the demand for diesel is almost 70 percent of the total fuel trade in the country and that the flow of a single product through the pipeline will ease the operation of the project, the state-owned fuel supplier has informed about its plan to supply only diesel through the bilateral pipeline project.
However, NOC has clarified that the supply of petrol and kerosene can also be made through the cross-border pipeline.
“The demand for diesel in the country is so high that even if we are able to meet the demand of only diesel via the pipeline, it will be a great achievement. We plan to import petrol and kerosene through the pipeline only after supplying the necessary quantity of diesel,” Sushil Bhattarai, deputy executive director at NOC, told The Himalayan Times.
The pipeline has the capacity to supply 294 kilolitres of fuel per hour. However, NOC is not in a position to operate the pipeline for 24 hours a day due to lack of ample fuel storage capacity.
If the pipeline is operated 15 hours a day, NOC will get 4,410 kilolitres of fuel per day and 1,32,300 kilolitres of fuel per month. Monthly demand for diesel is 1,60,000 kilolitres.
“The challenge for NOC is to maintain an effective supply of diesel over other fuels whose demand is much lower. We plan to use the pipeline to supply only diesel, at least till NOC develops enough storage infrastructure and collects experience in operating the pipeline,” added Bhattarai.
Prime Minister KP Sharma Oli and his Indian counterpart Narendra Modi are expected to virtually inaugurate the pipeline project in August, thereby commencing the commercial fuel trade with India via the pipeline.