Construction preparations for the national-priority Amlekhgunj-Lothar petroleum pipeline project are progressing rapidly in Lothar of Rapti Municipality-1, Chitwan. Land filling and construction of an external boundary wall are currently underway at the project site.

According to Project Chief and Nepal Oil Corporation Director Pradeep Kumar Yadav, the Environmental Impact Assessment (EIA) of the project has also reached its final stage. A greenfield terminal with modern facilities will be constructed on approximately 23 bighas and 12 katthas of land in Lothar.

A 62-kilometer-long, 10.75-inch petroleum pipeline will be constructed from Amlekhgunj to Lothar. The pipeline will run parallel to the East-West Highway and has been designed to bypass Hetauda market. The project is targeted for completion and operation within three years.

According to Nepal Oil Corporation, the pipeline will be capable of supplying petroleum products at a rate of 273 kiloliters per hour. Storage facilities for petrol, diesel, kerosene, and aviation fuel will be constructed at the Lothar terminal, with total storage capacity expected to reach 91,900 kiloliters.

Motidan Construction has received a contract worth approximately Rs. 790 million for land filling and construction of the external boundary wall. The company began work in Bhadra and has accelerated construction with the aim of completing the work within eight to nine months, despite the contract period being one year.

Once aviation fuel storage facilities are established at Lothar, aviation fuel currently transported by tankers from Barauni, India, can also be supplied through the pipeline. The Nepal Oil Corporation estimates that this could save around Rs. 5 per liter in transportation costs and approximately Rs. 2 billion annually.

The total estimated cost of the pipeline and storage facilities is Rs. 14.096 billion. Once completed, the project is expected to make petroleum supply more convenient in Nepal's western and northern regions.