India agrees to build gas pipeline to Nepal

10 September 2018

India has agreed to build a gas pipeline to Nepal to help it save on fuel transportation costs. The two countries had agreed to discuss the modality of the construction during the meeting of the joint working group scheduled to be held on September 26 in Kathmandu.

Gas pipeline
Source: Google

India is currently building an oil pipeline linking Motihari and Amlekhgunj. So far, 17 km out of the 36.2-km section of the pipeline which lies in Nepali territory has been completed, according to Nepal Oil Corporation (NOC). The alignment of the pipeline lies on the Birgunj-Pathlaiya road that is undergoing expansion into a six-lane highway.

NOC said that Nepal’s fuel imports have swelled sharply in recent years. In the last fiscal year, demand for cooking gas surged 18% to 370,560 tonnes. The gas pipeline will result in savings of around INR 2 B annually for Nepal by eliminating tanker trucks. Diesel and cooking gas accounted for 80% of the total fuel import bill of INR 170 B in the last fiscal year.

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