Kathmandu, February 17

Indian Oil Corporation (IOC) has principally agreed to provide single-point loading facility of liquefied petroleum gas (LPG) to Nepal from Muzaffarpur once it extends its LPG pipeline to the said location.

Nepal Oil Corporation (NOC) Spokesperson Bhanubhakta Khanal said IOC has principally agreed on the proposal forwarded by NOC to provide total LPG loading to Nepal from Muzaffarpur-based refinery in the near future.

Muzaffarpur is only 173 kilometres far from Amlekhgunj, while the five other refineries from which IOC is currently supplying LPG to Nepal are located at a distance of up to 1,070 kilometres away from Nepal’s border.

The IOC is expanding its LPG pipeline at Paradip to Muzaffarpur within the next one-and-a-half years. “Once IOC brings its LPG pipeline to Muzaffarpur, we will request IOC to develop a separate single-point LPG loading point for Nepal at Muzaffarpur refinery,” said Khanal, adding that IOC was positive regarding this.

“NOC will then sign an agreement with IOC before disconnecting itself from other existing LPG refineries and start collecting LPG from Muzaffarpur refinery,” he said.

LPG supply from Muzaffarpur will significantly reduce transportation cost as the refinery is located at a distance of only 173 km from Amlekhgunj

As per Khanal, single-point LPG loading facility at Muzaffarpur will bring down LPG transportation cost significantly for Nepal as it is located at a much shorter distance from Nepal border compared to the distance of other refineries from where NOC is currently collecting LPG.

Currently, IOC is supplying LPG to Nepal through five of its refineries, which are located at quite a distance.

While Paradip refinery is 1,070 kilometres away from Amlekhgunj, Karnal refinery of IOC is 1,068 kilometres from Amlekhgunj. Similarly, Mathura, Haldia and Barauni refineries of IOC are located at a distance of 1,048 kilometres, 801 kilometres and 273 kilometres, respectively, from Amlekhgunj.

Khanal said that reduction in LPG transportation cost will also directly benefit consumers as LPG price would come down notably once IOC starts supplying LPG to Nepal from Muzaffarpur.

Meanwhile, he also said that IOC has shown interest in extending its LPG pipeline to Nepal’s border from Muzaffarpur at a recent high-level meeting between NOC and IOC.

Similarly, IOC technical team is also visiting Nepal soon to finalise the spot alignment of the Raxaul-Amlekhgunj oil pipeline.