This is the first transnational petroleum pipeline form India and 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 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 pipelinewill 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 Oli.
The two Prime Ministershad 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 pipeline is around Rs.350 crore and it is entirely borne by IOC.
Twenty eight technical and non technical officials of NOC have also been trained by IOC.Besides constructing pipeline, IOC has also refurbished two storage tanks of NOC at Amelkhgunj depot.
In the second phase it will built two storage tanks, a laboratory and 24bays for 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.8,500 crore. IOC has also submitted a study report to NOC for laying a LPG pipeline along Motihari-Amelekhgunj pipeline.