The Nepal Oil Corporation (NOC) has taken steps to develop the Lumbini Regional Storage Facility in Rupandehi. To move this project forward, the state-run oil monopoly has signed an agreement with Kathmandu University (KU) to prepare a detailed project report (DPR).
The agreement was signed on Wednesday by Pradeep Yadav, NOC’s Deputy Director and Head of the Storage Capacity Expansion Project, and Bibek Baral, Head of KU’s Consultancy Department. KU has committed to completing the DPR within six months.
In related news, NOC plans to increase the storage capacity at its Gagangaunda depot and intends to begin construction of the Lumbini facility once the DPR is completed. Additionally, the corporation aims to relocate the existing depot at Bhalbari by November 2025. NOC has also teamed up with Pulchowk Engineering Campus to prepare a DPR for relocating the aviation fuel depot from Tribhuvan International Airport in Kathmandu.
The current NOC Lumbini regional office, situated on around 5.5 bigha of land along the Bhairahawa-Butwal highway, can store 519 kiloliters of petrol, 3,000 kiloliters of diesel, and 140 kiloliters of kerosene. However, Deputy Director Yadav pointed out that the current storage capacity is inadequate to meet increasing demand, as it covers only two days’ worth of petrol and five days’ worth of diesel.
NOC operates several storage depots across the country, including in Kathmandu, Biratnagar, and Nepalgunj, with a total storage capacity of 60,384 kiloliters. Nepal relies on imported petroleum products, with NOC sourcing fuel from India’s Indian Oil Corporation (IOC).
