Technical Issues Surface in Amlekhgunj Pipeline Even Before Inauguration

Technical problems have emerged in the second-phase infrastructure of Nepal Oil Corporation’s (NOC) pipeline in Amlekhgunj even before its formal inauguration.

According to NOC, the issue has been detected near the tank loading area (TLF shed), where the fuel from storage tanks is loaded into tankers. The problem reportedly involves pipeline misalignment, vibration during fuel loading, and signs of pipe bending.

Chandika Prasad Bhatt, Executive Director of NOC, said, “While loading diesel and petrol, the pressure builds up in the pipeline causing movements at the loading bay. It appears the pipe has shifted forward by approximately 10 cm. The vibration occurs when the pump is started, and the valve isn’t releasing pressure as expected.”

About 10 days ago, NOC informed Indian Oil Corporation (IOC) about the issue. However, the technical team from IOC is only expected to arrive by July 30. Repairs will commence following their visit, and pipeline operations will be temporarily suspended. Bhatt reassured that despite the shutdown, there will be no shortage of fuel in the market.

“Running the system under high pressure (7–8 bar) is risky. At lower pressure (4–5 bar), it’s safer even if loading takes longer,” Bhatt added. “We have adjusted operations accordingly until the technical team arrives, and we will ensure there’s no shortage even during repairs.”

This isn’t the first time the pipeline has encountered technical glitches. A similar problem occurred two months ago, during which IOC’s technical team conducted repairs, and the pipeline remained shut for six days.

The current issue arises specifically during the transfer from the storage tank to the loading bay and then into the tanker. According to Pralayankar Acharya, Head of NOC’s Amlekhgunj Regional Office, “The concern is whether the pipe may break due to pressure and movement. We’ve reported the issue to the central office.”

Project Background

The highly anticipated Nepal–India cross-border petroleum pipeline was officially inaugurated on September 10, 2019 (Bhadra 24, 2076) by then-Prime Ministers KP Sharma Oli of Nepal and Narendra Modi of India.

• The first phase facilitated diesel import only.
• The second phase, jointly developed by NOC and IOC, expanded to include petrol and kerosene imports.
• Investment:
  • NOC: NPR 1.54 billion
  • IOC: INR 750 million

As part of the second phase, NOC constructed:

• 4 new storage tanks
• Fully automated loading bays
• A modern laboratory

There are 24 automated loading bays with 36 filling points:

• Petrol: 7 bottom-load, 8 top-load
• Diesel: 4 bottom-load, 14 top-load
• Kerosene: 1 bottom-load

Pipeline construction was led by IOC and executed by Indian firm Likhita International, though project deadlines extended beyond the March 2024 target.

Despite several reminders, IOC delayed the official handover. Eventually, NOC began importing petrol and kerosene through the pipeline at the end of January 2025 (Magh), without a formal inauguration from IOC.

The current issues have been observed particularly in the TLF shed, where tanker loading takes place.

Fuel Availability Not at Risk

According to Acharya, “Even if the pipeline is shut for up to 7 days, we can continue fuel distribution from our storage. We can also load from the old depot.”

Current fuel stock at Amlekhgunj Depot:

• Diesel: 25,500 kiloliters
• Petrol: 17,500 kiloliters
  Daily sales: 3,000–3,500 kiloliters

Fuel from Amlekhgunj is distributed to Thankot, Pokhara, Bhairahawa, Biratnagar, and Janakpur depots.