As the Motihari-Amlekhgunj pipeline gets completed, Nepal intends to sign a G2G agreement with India for two more petroleum pipeline projects and has forwarded proposals to the Indian government for the same.

Nepal has sought India’s technical support and grant assistance for the construction of two more
petroleum pipeline projects under the government-to-government (G2G) agreement – as published on a
leading news agency.

The petroleum pipeline, spanning 69 km, laid between Motihari in Bihar and Amlekhgunj in Nepal’s Bara
district constructed with India’s assistance is already in operation. Being launched on September 10,
2019, the pipeline is being used for supplying diesel from Indian Oil Corporation Ltd (IOCL) to Nepal Oil
Corporation (NOC) Ltd.

Once the Motihari-Amlekhgunj pipeline is completed, the Nepal government seeks to enter into a G2G
agreement with India to construct two more petroleum pipeline projects and has forwarded proposals
to the Indian government in this connection, as per the report.

Among the proposals, one is for a 52-km pipeline from Siliguri in West Bengal to Jhapa in Nepal and another 69-km pipeline connecting Amlekhgunj to Lothar in Chitawan district, both within Nepal, as an extension of Motihari-Amlekhgunj pipeline, said Ms. Urmila K C, Under Secretary at Nepal’s Ministry of Commerce, Industry and Supplies. The cost for construction of the Siliguri-Jhapa pipeline project is estimated to be INR 288 crore and the Amlekhgunj-Chitawan pipeline is expected to cost INR 128 crore.

“We are waiting for India’s approval for signing the MoUs for the construction of the two pipeline projects, she said, adding that detailed surveys of both the projects have already been completed by a joint technical team from Nepal and India,” she said.

The proposal also includes the construction of a 40,000 kilolitre (KL) storage tank in Jhapa and a 1,00,000 KL capacity storage tank in Chitawan with India’s assistance, she said. The Nepal government has also proposed the construction of two storage tanks with a capacity of 41,000 KL each, in Amlekhgunj. Out of this, one is to be constructed with India’s assistance and the other by the Nepal government itself.

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After the completion of these pipelines, fuel for aircraft and other petroleum products will be effectively supplied to Nepal, and it would substantially reduce fuel transport costs.