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NOC Increasing Fuel Storage Capacity as per Provincial Basis

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NOC Increasing Fuel Storage Capacity as per Provincial Basis
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January 25: Nepal Oil Corporation (NOC) is increasing its fuel storage capacity. It is planning to increase its fuel storage capacity by 424,000 kiloliters to ease the availability of petroleum products.

According to NOC, it has current fuel storage capacity of 71,600 kiloliters in various 10 locations including Kathmandu, Amlekhgunj, Pokhara, Nepalgunj, Bhairahawa and others. The stock can meet the fuel demand for 17 days. The storage capacity will be increased so that the demand can be met till 90 days, said NOC.

NOC started the preparation with the government's decision to increase the petroleum products storage capacity so that to avoid suffering due to lack of fuel.

The ever increasing demand of fuel has also triggered the need of raising storage facility. "Nepal Government has already taken the strategic decision of raising the storage facility so that to meet at least three months demand," said Gopal Bahadur Khadka, Executive Director of NOC. Khadka opined that in order to avoid acute fuel shortage due to supply constraints of few days and to make pipeline transfer ease and affordable, adequate storage capacity is fundamental.  As per him, the government has initiated work on that aspect.

"NOC targets to build storage area as per provincial structure. For that matter, essential policy and budget has been already managed," said a NOC source.  NOC plans to build storage facilities in all the provinces immediately after acquiring lands required for construction. It is anticipated that the construction of storage facilities will cost above Rs 100 billion.

As per the NOC, it plans to raise the storage facility by 92,465 kiloliters in Province no 1 and by 81,587 in Province no 2. Similarly, it has planned to increase storage facility by 201,566 in Province no 3, by 32,634 in Province no 4 and by 97,904 in Province no 5. Likewise, it is planning to raise the storage facility by 5,500 in Province no 6 and by 21,750 in Province no 7.

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