KATHMANDU, Sept 29: A bilateral meeting headed by ministers from Nepal and India held in Kathmandu on Friday has discussed laying Liquefied Petroleum Gas (LPG) pipeline from Motihari, Bihar of India to Bara district of Nepal. Minister for Industry, Commerce and Supplies Matrika Prasad Yadav of Nepal and Minister for Petroleum and Natural Gas Dharmendra Pradhan of India led the talks team of the respective countries.
“The two sides in the presence of the two ministers discussed petroleum pipeline extension of Motihari-Amlekhgunj-Chitwan, building of Motihari-Amlekhgunj LPG pipeline, and extension of natural gas pipeline from Gorakhpur of India to Sunauli-Bhairahawa of Nepal,” read a statement issued by the Ministry of Industry, Commerce and Supplies on Friday. They also discussed increasing petroleum storage capacity in Sarlahi, Chitwan, and Dhanusha districts and establishing Vocational Training Center, the statement added.
“Had a detailed review of bilateral energy cooperation with my counterpart Minister Matrika Prasad Yadav; agreed to work together to complete at an early date the Petrol, Diesel & ATF pipeline from Motihari in Bihar to Amlekgunj in Nepal,” Indian Minister Pradhan wrote on Twitter after the meeting. “Also agreed to explore possibilities of laying pipeline from India to Nepal for LPG and pipeline for natural gas for fertilizer plant, industries etc in Nepal; IOC and Nepal Oil Corporation (NOC) will work together on these projects.”
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According to the ministry, Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) will be working jointly in the projects.
The detailed review of bilateral energy cooperation meeting among the ministries has found the project of Motihari to Amlekhgunj satisfactory and swiftly progressing. The cross-border pipeline project was first proposed by the IOC in 1995. However, its implementation has moved at snail pace largely due to skepticism in Nepal over its smooth operation. Later, the two countries agreed to construct the Motihari-Amlekhgunj pipeline. A minister-level meeting held on 24 August, 2015 had signed the agreement on the pipeline project.
The 69-kilometer pipeline from Motihari to Amlekhganj will have a capacity of supplying two million tons of petroleum products per annum. The project is estimated to cost Rs 4.4 billion. Under a previous agreement between Nepal and India, India will finance Rs 3.2 billion of the cost and the Government of Nepal will contribute Rs 1.2 billion.
IOC, the Indian government-owned oil and gas company that supplies petroleum products to Nepal, is implementing the pipeline project while Nepal’s oil monopoly NOC will acquire land for the project on the Nepali side. The laying of the pipeline is already underway.
Once it is laid, the pipeline is estimated to reduce fuel transportation cost by 40 percent, something that is expected to greatly relieve Nepali consumers. It is also expected to generate additional revenue for the government, reduce technical loss, and oil theft and road deterioration, besides making oil supplies cleaner and cheaper.
The Indian minister arrived in Nepal Friday morning on a two-day visit.
Later the Indian minister also met Minister for Education Giriraj Mani Pokharel and discussed areas of cooperation in skill development and entrepreneurship. He also called on President Bidhya Devi Bhandari and briefed her about cooperation with Nepal on the ongoing oil and gas projects.
