The Indian government directed the state-owned Indian Oil Corporation's (IOC) refinery in Barauni to increase the quota of LPG for Nepal. The refinery has been ordered to boost LPG supplies to 30,000 tonnes monthly from February. Nepal presently receives 22,000 tonnes of the cooking fuel per month.

The two sides agreed to continue their cooperation and explore avenues of cooperation in other possible areas in the oil and gas sector, a statement issued jointly after the meeting concluded said.

According to Nepal Oil Corporation (NOC), consumption of LPG surged 14.12 percent to 207,038 tonnes in the 2012-13 fiscal. Nepal's LPG import bill amounts to around Nepali Rs.20 billion (RS.12.50 billion) annually.

During a meeting earlier in the week between Indian Minister of State for Petroleum and Natural Gas Dharmendra Pradhan and Nepal's Minister for Commerce and Supplies Sunil Bahadur Thapa in New Delhi, the Indian side agreed to send a technical team to Nepal to study the feasibility of laying LPG and natural gas pipelines.

Pradhan assured Thapa that LPG would be supplied to Nepal in adequate quantities without interruption.

India will explore the feasibility of building LPG (liquefied petroleum gas) and natural gas pipelines to Nepal, after the two neighbours agreed to build a petroleum pipeline link, a statement here Wednesday reports IANS.