Project Profile
Value: 2.75 billion Indian rupees (US$43 million)
Location: Raxaul (India) to Amlekhgunj (Nepal)
Length: 41 km
Capacity: 1.3 million tpy
Project Status: Procurement contracts have been tendered
Nepal Oil and Indian Oil signed a memorandum of understanding (MoU) in 2015 to construct a 41-kilometre petroleum products pipeline between Raxaul in India and Amlekhgunj in Nepal.
The pipe is slated to pass via the Birgunj Customs point, the Birgunj Bypass, Gandak, Parwanipur, Jitpur, Simara and Pathlaiya before terminating at Amlekhgunj.
It will receive fuel from Indian Oil’s 7.5 million tpy (150,000 bpd) refinery in Haldia, West Bengal and its 6 million tpy (120,000 bpd) refinery in Barauni, Bihar.
The duct should cost 2.75 billion rupees (US$42.8 million) to deliver, of which Nepal must pay 750 million rupees (US$11.67 million).
Indian Oil was reported to have agreed to fund the pipeline in return for Nepal Oil buying offtake from the line for at least 15 years.
An extension is also believed to be under consideration for Chitwan in southern Nepal, though Kathmandu would have to fund the entire leg itself.
Operators:
Indian Oil