Construction of the Country’s Largest Fuel Storage Facility Begins in Chitwan with 14 Billion Investment

Nepal Oil Corporation has officially commenced the construction of the largest petroleum storage facility in the nation, located in Lothar, Chitwan. Acting Executive Director Deepak Baral inaugurated the land preparation work for the first phase, assuring that the project will be completed within the designated timeframe. Upon completion, the facility will have a storage capacity of 91,900 kiloliters of fuel, which is expected to reduce transportation costs and technical leakages.

This initiative, aimed at enhancing long-term fuel supply security and increasing storage capacity, marks a strategic milestone for NPC. On Wednesday, Acting Executive Director Deepak Baral conducted a traditional land blessing ceremony in Lothar, Rapti Municipality, to formally kick off the first phase of the project. He stated, “Through an open competitive process, we have selected a construction company and initiated the first phase of this strategically important project.”

The project spans an area of 25 Bigha 7 Dhur. The initial phase focuses on preparing the land for construction. For this, the Corporation awarded the contract to ‘Motidhan-DS JV’ through an open competition for NPR 795.4 million. Deputy Director Pradeep Yadav noted, “We have instructed the construction company to work intensively day and night. Our goal is to complete all preliminary land preparation within 6 to 9 months and transfer the site to IOC.”

The project also includes the construction of a 62-kilometer petroleum pipeline from Amlekhgunj, Bara to Lothar, Chitwan. IOC will provide a grant of approximately NPR 428.8 million toward pipeline construction costs. Meanwhile, Nepal Oil Corporation will supply an estimated NPR 980 million for the storage facility construction. This project will enable sustainable fulfilment of fuel requirements for Bagmati and surrounding regions over a long term.