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India and Nepal Strengthen Energy Partnership with New Petroleum Infrastructure Agreement

The agreement aims to strengthen petroleum supply chains and reduce logistical costs by extending the existing Motihari-Amlekhgunj pipeline to Chitwan, Nepal, adding 62 kilometers.
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Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) have taken a major step towards enhancing energy security and bilateral cooperation by signing a new agreement for the development of key petroleum infrastructure projects in Nepal. The Business to Business (B2B) Framework Agreement, signed in the presence of senior officials including Pankaj Jain, Secretary of India’s Ministry of Petroleum and Natural Gas, and V Satish Kumar, Chairman and Director (Marketing) of IndianOil, marks a significant milestone in the energy partnership between the two nations.

The agreement aims to strengthen petroleum supply chains and reduce logistical costs by extending the existing Motihari-Amlekhgunj pipeline to Chitwan, Nepal, adding 62 kilometers. A new pipeline will also be constructed from Indian Oil’s facility in Siliguri to Jhapa, Nepal, covering 50 kilometers. Additionally, oil storage terminals will be developed at both Chitwan and Jhapa, ensuring secure and reliable fuel supply for Nepal.

Indian Minister for Petroleum and Natural Gas, Hardeep Singh Puri, emphasized the importance of this collaboration in bolstering India-Nepal relations, highlighting how these initiatives align with Prime Minister Narendra Modi’s vision of “Vasudhaiva Kutumbakam” (the world is one family). The projects are expected to improve Nepal’s energy security and meet its growing fuel demands.

This latest agreement follows a Government-to-Government Memorandum of Understanding (MoU) signed in May 2023 between India’s Ministry of Petroleum and Natural Gas and Nepal’s Ministry of Industry, Commerce, and Supplies. With these critical infrastructure developments, the India-Nepal energy partnership is set to further strengthen, with Indian Oil committing to the timely completion of these projects, which are poised to transform fuel logistics between the two countries.


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