India’s largest oil marketing company, Indian Oil will assist Nepal Oil Corp (NOC) in laying a petroleum products pipeline that will supply fuel to Nepal and in jointly marketing fuel in Nepal, union minister of state for oil and gas Dharmendra Pradhan said on Monday.
India has been a traditional supplier of petroleum products to Nepal since 1974. Nepal currently receives its entire demand of about 200,000 kilo litres of fuel every month from Indian Oil Corp (IOC).
Minister Pradhan said he discussed various issues of mutual interest with Minister for Supplies, Government of Nepal, Mr Deepak Bohara, including the status of Motihari – Amlekhgunj petroleum product pipeline.
He highlighted that the pipeline once completed will further ensure continuous and uninterrupted supply of products to Nepal. Both Ministers also discussed on construction of a similar pipeline for supply of LPG between India and Nepal.
Mr Pradhan assured the visiting Nepalese delegation IndianOil will help build pipeline to supply petrol, diesel and cooking gas to Nepal, that currently gets all its supplies via road. As any unrest close to the border or a road trouble can hold back supplies, leading to acute energy shortage in the country, a pipeline can help overcome this problem.
After renewing its agreement with Nepal to supply petroleum products till March 2022, IndianOil said, “the salient features of the agreement includes meeting the major requirements of POL products of Nepal by pipeline after the laying of the Patna-Motihari-Amlekhganj Pipeline. This pipeline will have the flexibility to receive products from IndianOil’s Barauni & Haldia refineries.
The Minister further said that India is also considering extending the natural gas pipeline from Gorakhpur in Uttar Pradesh to Nepal. State-run GAIL is building the proposed pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal, which crosses Gorakhpur.