China to supply fuel to shortage-hit Nepal
China will supply fuel to its neighbouring country Nepal to ease petroleum shortages that have struck the Himalayan nation, reported the Financial Times.
Nepal Oil Corporation and China National United Oil Corporation, both state-controlled, have signed a memorandum of understanding on October 28, which will lead to China donating 1.3m litres of fuel to Nepal.
Nepal turned to China after its long-time fuel provider India’s state-owned Indian Oil Company halted supply, which most Nepalis interpret as India’s way to oppose their newly adopted constitution.
The first-ever fuel agreement with China, according to analysts, might be extended eventually ending Nepal’s energy dependence on India.
The country, which has been experiencing cooking gas and petroleum shortages for nearly a month, is still struggling following earthquakes in the spring that killed almost 9,000 people, has been relying on India for overland supplies, reported the Reuters.
But as relations with India turned cold, establishing deeper economic relations with China is already an option for Kathmandu with its plans to look into transporting fuel via its northern land crossings with China, according to ChannelNewsAsia.
