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Nepal Oil Corporation to Build Modern Aviation Fuel Depot at TIA with Rs 6.5 Billion Investment

CEO Tab by CEO Tab
July 25, 2025
in Prime News
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NOC clears all its outstanding dues, now starts enjoying operating profits
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Nepal Oil Corporation (NOC) has announced plans to construct a state-of-the-art aviation fuel depot at Tribhuvan International Airport (TIA), with an estimated investment of Rs 6.5 billion. This decision comes as the current fuel storage facility at Sinamangal is no longer adequate—it lacks space for expansion, fails to meet international safety standards, and poses increasing operational risks.

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To address these concerns, NOC will relocate the fuel depot to the northeastern Guheshwari area of the airport premises. The Institute of Engineering, Pulchowk Campus, officially handed over the Detailed Project Report (DPR) to NOC, outlining the project’s design, estimated cost of Rs 6.54 billion, and compliance with global aviation and petroleum safety standards, such as those set by the American Petroleum Institute (API).

The DPR was prepared following a Cabinet decision on August 12 to move the facility. The new depot is designed to accommodate five vertical fuel tanks, each with a capacity of 3,000 kiloliters, and room for future expansion. According to Pradeep Kumar Yadav, the chief of NOC’s depot division, the facility is built to fulfill Nepal’s aviation fuel requirements for the next 50 years.

This modern depot will feature advanced automation, including six loading bays, eight unloading bays, and seven hydrant refuelers specifically to support international air carriers. For safety, it will include two 2,100 kiloliter water tanks and an automated fire suppression system.

NOC plans to issue international tenders by August/September (Bhadra) and aims to begin construction in November/December (Mangsir), depending on the completion of land management tasks by the Civil Aviation Authority of Nepal. The construction is expected to be completed within two years, with full operations projected to start by mid-December 2027.

Suraj Lamichhane, Assistant Dean of the Institute of Engineering, expressed satisfaction with the timely completion of the DPR and affirmed the institution’s technical expertise in designing such critical national infrastructure. This project marks a major step forward in enhancing aviation fuel storage, safety, and efficiency at Nepal’s only international gateway.

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