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Officials see chances of signing oil deal albeit late

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BEIJING, March 21: At a time when a section of people in Kathmandu are arguing that Prime Minister KP Sharma Oli's China visit could be unsuccessful unless and until he signs a fuel purchase deal, officials from both the countries see chances of oil deal between the two countries albeit late. Officials say that China is committed for fuel-supply deal with Neal.

Though the fuel purchase agreement is not included in the agenda of Monday's bilateral meeting between Prime Minister Oli and Chinese Premier Li Keqiang, officials say that both sides are ready to express commitments on infrastructural development for it.The two countries have already agreed on principle that Nepal could import fuel from China in future and the officials are regularly discussing the issue. However, it seems that finalizing the quality, price and transportation related issues on fuel purchase could take some more time. The officials are in a mood to sign agreement only after finalizing the issues of transport, price and storage of the fuel.

"Stressing on the infrastructure development at first does not mean that importing fuel from China has become impossible," said a Nepali diplomat in Beijing. "China and Nepal will ultimately engage in fuel trade. In prime minister's meeting with Chinese leaders, a commitment could be made to develop infrastructure for fuel trade. However, it could take some more time," he added.

Some South Asia experts in Beijing, however, suggest Nepal for long-term solutions rather than focusing on fuel trade with China or India. "Neal and China could sign agreement for fuel trade by making all the necessary arrangements. However, importing fuel from India and China could be expensive for Nepal," said Xu Laing, a lecturer at Beijing International Studies University.

"Nepal could take Chinese support to develop hydropower projects, which in the long run could end fuel problem in Nepal and help in making a pollution free country," he added.



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