Second phase of India-Nepal petroleum pipeline construction deal signed

India and Nepal today signed an agreement on second phase of petroleum pipeline construction that is expected to ease supply in the Himalayan nation.
The agreement was signed by Nepal Oli Corporation (NOC) Executive Director Dr Chandika Prasad Bhatta and Indian Oli Corporation (IOC) Director Senthil Kumar, in Kathmandu.
Following the signing ceremony, IOC posted a message on Twitter saying, “Proud to strengthen the India-Nepal energy partnership through this B2B Framework Agreement between #IndianOil and Nepal Oil Corporation.”
Under the agreement, a 50-km petroleum pipeline will be constructed from Siligudi of India to Charali of Nepal. Similarly, a Smart Greenfield Terminal (SGT) with the capacity of 18,900 kiloliters of petroleum products will be built at Charali.
The collaboration paves the way for smooth supply of petroleum products to Nepal, especially in hills, enhancing energy security for both nations, the IOC said, expressing hope that it would also further enhance the bilateral ties.
“This collaboration, in the presence of secretary, Ministry of Petroleum and Natural Gas (MoP&NG) Pankaj Jain, will enhance energy security and optimize petroleum logistics, particularly for the hilly terrains. As Jain highlighted, “IndianOil’s pivotal role in these projects is commendable, and their timely execution will further strengthen ties between India and Nepal,” reads the twitter message posted by the IOC.

The Government of India will provide a grant for the implementation of a project to build a 62-kilometer petroleum pipeline from Amlekhgunj to Lothar of Chitwan.
Likewise, at Lothar, a Smart Greenfield Terminal (SGT) with 91,900 kiloliters will be built by the NOC with the technical assistance of the Indian government. The total cost of these projects is worth Rs 15 billion.
Secretary at the Ministry of Petroleum and Natural Gas of India Pankaj Jain, and IOC Chairman V Satish Kumar were present during the ceremony, according to a press release issued by the Nepal Oil Corporation (NOC).
Earlier, in May-June, 2023, the MoU was signed during former Prime Minister Pushpa Kamal Dahal’s visit to India to construct the second phase of petroleum pipeline in Nepal by India.