India-Nepal Forge Stronger Ties with New Petroleum Pipeline Agreement

Indian Oil Corporation and Nepal Oil Corporation have cemented a new B2B agreement to extend the transnational Motihari-Amlekhgunj petroleum pipeline and build oil storage terminals in Nepal. This venture aims to enhance energy connectivity, optimize logistics and fortify energy security for both nations.

In a significant development, Indian Oil Corporation Limited and Nepal Oil Corporation (NOC) have entered into a Business-to-Business (B2B) framework agreement, marking a major stride in Indo-Nepal energy cooperation. The accord aims to extend the Motihari-Amlekhgunj Petroleum Pipeline (MAPL) and establish oil storage terminals in Chitwan, Nepal, as outlined in a released statement.

This initiative builds on the Government-to-Government (G2G) Memorandum of Understanding (MoU) signed earlier between India's Ministry of Petroleum and Natural Gas (MoP&NG) and Nepal's Ministry of Industry, Commerce, and Supplies (MoICS) on May 31, 2023. Crucially, the MAPL, commissioned in 2019, is recognized as South Asia's pioneering transnational petroleum product pipeline.

Under the new agreement, the construction of oil storage terminals at Chitwan and a new pipeline from IndianOil's Siliguri facility to Jhapa will proceed, showcasing a commitment to reinforcing energy security. Pankaj Jain emphasized the importance of these pipelines for Nepal, a country facing geographical challenges. V Satish Kumar hailed the partnership as essential for seamless energy connectivity between the nations, underlining this venture's role in meeting future energy demands and reducing logistic costs while enhancing Nepal's energy security infrastructure.

(With inputs from agencies.)