IOC to help build India-Nepal fuel pipeline

India’s flagship national oil company, Indian Oil Corporation (IOC) will help in constructing a fuel pipeline between the two countries, which will help in mitigating the chance of energy shortage in Nepal. The hilltop country solely depends on India to fulfil its demand of about 200,000 kilo litres of fuel per month, which is now supplied through roadways. However, considering the challenges of political unrest near the border and road uncertainties, need for a permanent pipeline has off late been essential.
As the state-run GAIL India is already constructing a natural gas pipeline between Jagdishpur in Uttar Pradesh to Haldia in West Bengal that will pass through Gorakhpur, according to oil minister Mr. Dharmendra Pradhan, the oil ministry is considering extending the same pipeline from Gorakhpur to Nepal.
IOC and Nepal Oil Corporation (NOC) – the state owned oil and gas trading enterprise of Nepal have already signed a fuel supply agreement, and the corporations are preparing to form a joint venture to market fuel in Nepal. According to the agreement, with effect from April 01, 2017, IOC will commence supplying petrol, diesel, kerosene, jet fuel and cooking gas to Nepal for the next five years.
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