India considers laying more petro pipelines for Nepal

Source: The post is based on the article “India considers laying more petro pipelines for Nepal” published in Livemint on 20th September 2022.

What is the News?

India is considering setting up more pipelines for transporting refined petroleum products such as diesel to Nepal.

Dependence of Nepal on India for petroleum products

Nepal is significantly dependent on India for petroleum products.

During the first eleven months of the Nepali financial year 2021-22, Nepal imported petroleum products worth Nepali rupee 292.77 billion which was 88.7% more than the imported amount of fossil fuels during the previous financial year.

What is the current petroleum pipeline between India and Nepal?

A 69-km-long petroleum pipeline between Motihari in Bihar and Amlekhgunj in Nepal’s Bara district constructed with India’s assistance is already in operation.

It was inaugurated in 2019 and is being used for supplying diesel from Indian Oil Corporation (IOC) to Nepal Oil Corporation.

What are the future petroleum pipelines between India and Nepal?

Nepal has sought India’s technical support and grant assistance to construct two more petroleum pipeline projects under a government-to-government agreement.

One is for the construction of a 52 km pipeline from Siliguri in West Bengal to Jhapa in Nepal and another 69 km pipeline connecting Amlekhgunj to Lothar in Chitawan district both within Nepal as an extension of the Motihari-Amlekhgunj pipeline.

Once completed, these pipelines will supply fuel for aircraft and other petroleum products to Nepal, substantially reducing fuel transport costs.