NOC to add new oil storage facility at Thankot : Report

Nepal Oil Corporation (NOC) has decided to add new petrol storage facility at Thankot depot in order to build buffer stock to raise the supply capacity of petrol in the Valley.

Under the decision, the corporation would add storage tanks that accommodate additional 1,110 kiloliters (KL) of petrol; reports quoted Ichchha Bikram Theca, NOC spokesperson as saying.

That would raise NOC's buffer stock of the product for additional 7 days. Currently, NOC has capacity to store 1,520 KL of petrol at Thankot depot, which meets effective demand of the fuel for 10 days.

Thapa elaborated that the initiative was taken in the wake of the problem the corporation faced in managing inventory and maintaining supply during the terai unrest.

During the unrest, which lasted for over three weeks in the beginning and extended for additional weeks after a gap of few weeks in the recent months, had seriously affected fuel transportation in the country.

While that prevented NOC from replenishing the stock, the limited stock in the depots against rising fuel demand had triggered a serious supply problem in the case of petrol.

Even though the corporation attempted to ease the crisis through diverting stock from Bhairahawa to Thankot, it had not helped much.

“Now we are all set to add tanks of capacity 760 kiloliters and 350 kiloliters for storing petrol,” said a senior staff at the NOC Engineering Department. He informed that new tanks will not be constructed as the corporation is devoid of funds.

“Instead, we will convert the 760 KL tank currently used for storing kerosene for petrol,” said he, adding that the other 350 KL tank being added would be relocated from the airport depot to Thankot.

The tank in the airport was used for storing kerosene in the past. However, it was left unused after the corporation took a decision not to store non-aviation fuel at its depot at the airport.

According to officials, the reinstallation and conversion of tanks would cost about Rs 500,000, and hence, is affordable for the corporation.

They further said that the latest upgrading initiatives of the corporation has come after a gap of over four years.