NOC to Build New Fuel Depot in Rupandehi

Nepal Oil Corporation (NOC) is set to construct a new modern petroleum storage depot on the bank of Rohini River in Rupandehi district at an estimated cost of Rs 5.79 billion (excluding taxes).

The Detailed Project Report (DPR) for the project was handed over to the state-owned fuel monopoly by Kathmandu University’s Consultancy Services Department on Wednesday, August 20.

According to NOC, the depot will be built on around 25.5 bighas of land along the Rohini River and will have a total storage capacity of 18,688 kiloliters. Of this, 13,500 kiloliters will be allocated for diesel, 4,960 kiloliters for petrol, and 228 kiloliters for kerosene. The facility is expected to meet the fuel demand of Lumbini Province for one month.

The depot will also include two fire safety water tanks with a combined capacity of 4,200 kiloliters, an automated storage and distribution system, loading and unloading bays with eight lanes each, and essential infrastructure such as a control building, administrative office, laboratory, billing and storage facilities, and staff housing.

NOC plans to call for bids in October and start construction by December, with the project targeted for completion within three years.

Project chief Pradeep Kumar Yadav said the existing Bhalbari depot in Bhairahawa no longer meets international safety standards and lacks space for expansion, prompting the decision to relocate. He added that the congested location within a dense settlement poses significant safety risks.

Kathmandu University’s Petroleum Engineering expert and former acting executive director of NOC, Sushil Bhattarai, said the new depot is necessary as the existing Bhalbari depot can only store fuel sufficient for two to three days. Currently, fuel is supplied from Amlekhgunj to Bhairahawa, and any obstruction along the highway could disrupt supplies to Lumbini Province.

NOC had signed an agreement with Kathmandu University last December to prepare the DPR. For the project, NOC has already purchased 11.5 bighas of land in Rohini and Omsatiya rural municipalities and is in the process of acquiring an additional 8 bighas. Both local governments have given in-principle approval for the depot’s construction, while 97 landholders in the area have also provided written consent to support the project.

Currently, NOC’s Bhalbari depot in Butwal operates on just 5.5 bighas of land with limited storage—519 kiloliters for petrol, 3,040 kiloliters for diesel, and 280 kiloliters for kerosene. Given the region’s growing consumption and the lack of land for expansion, NOC said relocation to Rohini has become essential. -- RSS