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IndianOil, Nepal Oil sign pact on pipeline
Friday, 10 September 2004, 19:30 IST
NEW DELHI: India's state-owned energy major Indian Oil Corporation (IndianOil) Thursday signed an agreement with Nepal Oil Corporation for laying a pipeline to supply petroleum products to the Himalayan kingdom.
The memorandum of understanding to construct the 35-km pipeline from Raxaul in Bihar on the Indian side to Amlekhganj in Nepal was signed at a function at IndianOil's corporate headquarters here.
The inking of the pact coincided with a visit to India by Nepalese Prime Minister Sher Bahadur Deuba.
IndianOil currently meets Nepal's entire requirement of petroleum products through tankers, which deliver supplies to Nepal Oil's depots and terminals in border areas.
IndianOil supplies about 60 percent of Nepal's requirement of major products from its Raxaul depot alone via the Amlekhganj depot of Nepal Oil, located about 35 km from the border.
"The proposed 35-km product pipeline will be designed for a capacity of 1.1 million metric tonnes per annum (MMTPA) to meet current and future needs," IndianOil said in a statement.
To be constructed at a cost of 
330 million, the pipeline is expected to be ready in 24 months. On completion, the pipeline will transport petrol, diesel and kerosene.
"The new pipeline is expected to ensure uninterrupted supply of petroleum products to Nepal through an environment-friendly mode of transportation, effecting savings in freight besides reduction in stock loss (through pilferage)," the statement said.
IndianOil and Nepal Oil have a mutually beneficial relationship going back three decades.
"The (agreement) will provide opportunities for future collaboration between IndianOil and Nepal Oil in areas of retail and LPG (liquefied petroleum gas), including setting up of bottling plants in Nepal," the statement said.
Source: IANS
330 million, the pipeline is expected to be ready in 24 months. On completion, the pipeline will transport petrol, diesel and kerosene.
"The new pipeline is expected to ensure uninterrupted supply of petroleum products to Nepal through an environment-friendly mode of transportation, effecting savings in freight besides reduction in stock loss (through pilferage)," the statement said.
IndianOil and Nepal Oil have a mutually beneficial relationship going back three decades.
"The (agreement) will provide opportunities for future collaboration between IndianOil and Nepal Oil in areas of retail and LPG (liquefied petroleum gas), including setting up of bottling plants in Nepal," the statement said.
Source: IANS