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NewsBase reports Indian Oil pipeline progress

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World Pipelines,

According to NewsBase, procurement contracts for pipeline materials have started to be tendered by Indian Oil in order to commence with the development of a 1.3 million t oil products pipeline to Nepal.

News sources have claimed that the winning bidders of the procurement contracts should be announced within a month, before a tender for the pipeline’s construction is announced.

Scheduled to terminate at Amlekhgunj, the pipeline will receive fuel from Indian Oil’s 7.5 million tpy (150 000 bpd) refinery in Haldia (West Bengal) and its 6 million tpy (120 000 bpd) refinery in Barauni (Bihar).

The duct should cost 2.75 billion rupees (US$42.8 million) to deliver, of which Nepal must pay 750 million rupees (US$11.67 million). An extension is also believed to be under consideration for Chitwan (southern Nepal), though Kathmandu would have to fund the entire leg.

At present, gasoline is trucked across the Himalayan border to Nepal. In 2015, the partnership between Indian Oil and Nepal Oil Corp. became strained when Indian Oil cancelled its tanker deliveries altogether. This led to a fuel shortage, which raised fears of a humanitarian crisis.

Nepal Oil Corp. may hope that the pipeline can prevent similar situations because it will bypass potential disruptions along the Nepalese border, where communities mounted blockades in 2015 to protest against Kathmandu’s constitutional agenda.

While this pipeline project seems to be making progress, it has been stalled for years, pending regulatory clearance from the Nepalese government, having already missed the original launch date of December 2016.

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