This is the first transnational petroleum pipeline from India and the first South Asian oil pipeline corridor. It is also the first oil pipeline in Nepal. Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) have successfully completed the testing transfer of the pipeline. The diesel released from Motihari in Bihar received at Amlekhgunj in Nepal on Friday. The pipeline is now technically commissioned and ready for launch. The oil pipeline will ensure smooth, cost-effective and environment-friendly supply of petroleum products to Nepal.
The prestigious project is expected to be inaugurated soon by the Prime Minister Narendra Modi and his Nepalese counterpart K P Sharma Oil. The two Prime Ministers had launched ground-breaking ceremony of the pipeline in April last year during Oli's visit to India. The 69kms long pipeline has been constructed by India in just 15months, half of its 30 months deadline. India and Nepal have age-old close and friendly relations and completion of pipeline much ahead of its schedule shows India's commitment to further strengthen bilateral ties. The cost of the pipeline is around Rs.3.50 billion and it is entirely borne by IOC. Twenty-eight technical and nontechnical officials of NOC have also been trained by IOC. Besides constructing the pipeline, IOC has also refurbished two storage tanks of NOC at Amelkhgunj depot.
In the second phase, it will be built two storage tanks, a laboratory, and 24bays for the supply of petroleum products. At present, NOC lacks storage facility and for optimal utilization of pipeline, NOC needs to enhance its storing capacity. Since 1974 Nepal has been sourcing its entire major petroleum products including petrol, diesel, ATF, and LPG from IOC. The annual worth of petroleum products exported to Nepal is over Rs.85 billion. IOC has also submitted a study report to NOC for laying an LPG pipeline along Motihari-Amelekhgunj pipeline.