MOTIHARI-AMLEKHGANJ PIPELINE

Sept. 11, 2019

Prime Minister Narendra Modi and his Nepalese counterpart K P Sharma Oli inaugurated the Motihari-Amalekhgunj petroleum pipeline through video conferencing.

About: 

  • The Motihari-Amlekhganj petroleum product pipeline is the first ever cross-border petroleum products pipeline in South Asia.

  • Route: The 69-km pipeline will transport fuel from Barauni refinery in Bihar's Begusarai district to Amalekhgunj in southeastern Nepal, situated across the border from Raxaul in East Champaran district.

  • Timeline:
    • The project was first proposed in 1996, but progress was slow.

    • In 2017, Indian Oil Corporation (IOC) signed a petroleum trade agreement to supply about 1.3 million tonnes of fuel annually to Nepal with a promise to double the volume by 2020.



  • Significance:
    • The pipeline will help in tackling the oil storage problem in Nepal. The Amalekhgunj fuel depot will have the capacity to store up to 16,000 kilolitres of petroleum products.

    • It will drastically reduce the cost of transporting fuel to landlocked Nepal from India by doing away with transportation of petroleum products through tankers (as part of an arrangement which is in place since 1973).