India and Nepal discuss issues of bilateral engagement in the oil and gas sector

5 Dariya News

New Delhi 31-Jul-2014

A Nepalese delegation led by its Minister of Commerce and Supplies Shri Sunil Bahadur Thapa, met Shri Dharmendra Pradhan, Minister of State (Independent Charge), Ministry of Petroleum & Natural Gas here yesterday and discussed issues of bilateral engagement in the oil and gas sector. Minister (P&NG) highlighted the importance that India attaches to its friendly and time-tested relationship with Nepal, which was amply brought out by the visit of External Affairs Minister of India to Nepal shortly after formation of the new Government in Delhi and the forthcoming visit of Prime Minister of India to Nepal. 

Appreciating the efforts of Indian Oil Corporation Limited in meeting the entire POL requirement of Nepal, Shri Thapa impressed upon the need for early construction of a product pipeline up to AmlekhGanj in Nepal for transport of petroleum products through an efficient and environment friendly way and to reduce dependence on tankers. Appreciating the concern of the Nepalese side, Shri Pradhan informed about the status of the proposal and requested the Nepalese side to convey all approvals from their Government for the pipeline. Minister (P&NG) reiterated the commitment of IOCL in meeting the POL requirement of Nepal. 

Shri Thapa also informed of the efforts initiated by the Government of Nepal for privatizing distribution of petroleum products. He urged IOCL to continue providing products to the private entities that are approved post privatization. Upon concern expressed by Shri Thapa on the acute shortage in availability of power, Minister (P&NG) suggested the Nepalese side to consider generating power through gas based power plants for which the requirement of gas could be met through supply of RLNG from India. Upon receipt of firm commitment from the Nepalese side, modalities regarding availability of RLNG and its transportation through pipeline up to the delivery point in Nepal could be firmed up. Shri Pradhan also offered to assist in working out economics for the proposed generation of power through gas based plants as against the generation of power using diesel and other liquid fuels.