News Release Details

Hon’ble MoS (I/c) for P&NG signs MoU on Petroleum Product Pipeline with Minister of Commerce and Supplies, Nepal
New Delhi   24-Aug-2015

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The Minister of State for Petroleum and Natural Gas
(Independent Charge), Mr. Dharmendra Pradhan and the
Commerce and Civil Supplies Minister of Nepal, Mr. Sunil Thapa
signing an MoU for the construction of Raxaul-Amlekhgunj
petroleum pipeline, in Kathmandu on
August 24, 2015.

Mr. Dharmendra Pradhan, Hon’ble Minister of State (I/c) for Petroleum & Natural Gas, met the Minister of Commerce and Supplies of Nepal, Mr. Sunil Bahadur Thapa on August 24, 2015 in Kathmandu. The two ministers reviewed the bilateral cooperation in the petroleum sector and agreed to work to expand cooperation in oil and gas to several other areas.

The ministers signed an MoU on Petroleum Product Pipeline, proposed to be built from Raxaul in India to Amlekhgunj in Nepal. In addition, IndianOil will also work on Amlekhgunj petroleum depot to make it compatible with receiving petroleum products by pipeline. The 41 kms pipeline (2 km in India and 39 km in Nepal) will initially supply petrol, diesel and kerosene. The pipeline will be constructed by IndianOil at a cost of Rs. 200 crore approximately from its own budget. The work is estimated to complete in 30 months after receipt of the necessary statutory clearances from Government of Nepal. Nepal Oil Corporation will invest Rs 75 crore to develop additional facilities in Amlekhgunj depot.

India exports about US$ 1.1 billion worth of petroleum products per annum to Nepal. Bulk of this volume will be transported through this pipeline. This will also ensure smooth, cost effective and environment friendly supply of petroleum products to Nepal. This is a major step in the direction of fulfillment of the announcement made by Hon'ble Prime Minister during his first visit to Nepal.

It will be the first transnational petroleum pipeline in South Asia and a significant step towards Hon'ble Prime Minister’s vision of improved regional connectivity among SAARC countries. Mr. Pradhan was accompanied by Ambassador of India, senior officials from MoPNG, MEA and Chairman, IndianOil.