NOC estimates cost of Rs 28 billion to boost petroleum storage capacity

Kathmandu February 28-  Nepal Oil Corporation (NOC) has estimated cost of Rs28 billion to boost its petroleum storage capacity to three months of supply. Currently, NOC has storage facilities at 10 locations that can stock 71,622kl of petrol, diesel, kerosene and aviation fuel—or 20 days of supply based on sales trend of 2014.

“The estimate includes costs for acquiring public and private land plots and developing infrastructure there, not the cost of the fuel to be stored,” said Sushil Bhattarai, acting deputy managing director of the NOC.

After Nepal’s sole fuel supplier Indian Oil Corporation (IOC) curtailed supply as part of India’s trade embargo, the government, through a White Paper in Nov 2015, announced plans to develop infrastructure in different locations to boost the country’s petroleum storage capacity.Source: TKP