India and Nepal have signed a landmark Business-to-Business (B2B) Framework Agreement aimed at enhancing petroleum infrastructure in Nepal. The agreement includes the construction of a 50-kilometer petroleum pipeline from Siliguri, India, to Charaali, Jhapa in Nepal.
The agreement was signed by Dr. Chandika Prasad Bhatta, Executive Director of Nepal Oil Corporation (NOC), and Senthil Kumar, Director of Indian Oil Corporation (IOC) Limited, at a program held today, as reported by The Himalayan Times.
Also present at the signing were Pankaj Jain, Secretary of the Indian Ministry of Petroleum and Natural Gas, and V. Satish Kumar, Chairperson of the IOC.
The IOC described the agreement as a significant step forward in the energy cooperation between India and Nepal, further strengthening the two nations’ partnership.
In addition to the pipeline, a Smart Greenfield Terminal with a storage capacity of 18,900 kiloliters will be constructed at Charaali. The project marks another milestone in boosting petroleum supply and infrastructure in Nepal.
As part of the broader infrastructure development plan, India will also provide a grant for a 62-kilometer petroleum pipeline from Amlekhgunj to Lothar, Chitwan. A Smart Greenfield Terminal with a capacity of 91,900 kiloliters will be constructed at Lothar by the Nepal Oil Corporation with technical assistance from the Indian government.
The total cost for these petroleum infrastructure projects is estimated at Rs 15 billion.
This agreement builds on the initial Memorandum of Understanding (MoU) that was signed during former Nepalese Prime Minister Pushpa Kamal Dahal’s visit to India in May-June 2023, highlighting the continued cooperation between the two neighbors in the energy sector.
