An agreement on fuel import was left out in the 10-point agreements signed between Prime Minister KP Sharma Oli and his Chinese counterpart Li Keqiang.
Earlier during the visit by Deputy Prime Minister and Minister for Foreign Affairs, Kamal Thapa Nepal had signed a framework agreement on importing one-third of fuel consumed in Nepal from the northern neighbor.
Nepali officials, however, have remarked that transit treaty has opened doors for importing fuel from third countries through China.
Officials argued that now Nepal can import crude fuel from Mongolia or other countries.
They said that Nepal and China have agreed on constructing infrastructures for fuel import and the issue will be included in the joint statement to be issued by the two prime ministers.
It is said that Nepal and China have agreed to sign an accord on fuel import only after finalizing issues of price, transportation and storage.
“Nepal and China will definitely reach an accord on fuel import,” said an official, “The issues over construction of infrastructures for fuel import will be included in the joint statement.”
Fuel is transported from Qinghai province to Tibet through pipeline and train as there is no refinery in Tibet. Nepal has to import fuel from Qinghai that is located some 2,500 kilometers from Nepal. Thus, discussions are underway to establish refinery in Nepal or in Tibet.
Likewise, officials from the two countries are mulling on an option to construct pipeline for fuel supply to Nepal.
Related story
Nepal, India agree to amend transit treaty to facilitate Nepal’...
