Indian Oil and Nepal Oil Corporation Sign B2B Framework Agreements for Major Petroleum Infrastructure Development in Nepal
In a significant step towards enhancing bilateral cooperation and energy security, Indian Oil Corporation Limited (IndianOil) and Nepal Oil Corporation (NOC) signed a Business to Business (B2B) Framework Agreement. The agreement follows a Government-to-Government (G2G) Memorandum of Understanding (MoU) signed earlier between India’s MoP&NG and Nepal’s Ministry of Industry, Commerce and Supplies (MoICS). The G2G MoU encompasses the extension of the Motihari - Amlekhgunj Petroleum Pipeline (MAPL) to Chitwan, Nepal, and the construction of oil storage terminals at Chitwan and a new transnational pipeline from IndianOil's facility in Siliguri to Jhapa alongside an oil storage terminal at Jhapa. These projects are expected to transform petroleum logistics between the two countries, mitigate handling losses & environmental risks, alleviate border congestion, and strengthen Nepal’s energy security.
Key Highlights
- IndianOil and NOC signed a B2B Framework Agreement for major petroleum infrastructure development in Nepal.
- The agreement follows a G2G MoU between India’s MoP&NG and Nepal’s MoICS for the extension of the Motihari - Amlekhgunj Petroleum Pipeline to Chitwan, Nepal, and the construction of oil storage terminals at Chitwan and Jhapa.
- The projects are expected to transform petroleum logistics between the two countries, mitigate handling losses & environmental risks, alleviate border congestion, and strengthen Nepal’s energy security.
- The B2B Framework Agreement is a significant step towards enhancing bilateral cooperation and energy security between India and Nepal.
- The agreement marks the beginning of a new chapter in India — Nepal energy partnership.