IndianOil and Nepal Oil Corporation sign agreement for petroleum projects in Nepal
Published by Isabel Stagg,
Editorial Assistant
World Pipelines,
IndianOil and NOC have formalised a business to business framework agreement to facilitate the development of key petroleum infrastructure in Nepal, reports GlobalData.
The agreement was signed by IndianOil Director of pipelines Senthil Kumar N, who is also director of planning and business development, and NOC Managing Director Chandika Prasad Bhatta.
It builds upon a prior government to government (G2G) MoU signed on 31 May 2023.
The MoU includes the extension of the Motihari – Amlekhgunj Petroleum Pipeline (MAPL) to Chitwan.
Commissioned in 2019, the MAPL is said to be the first transnational petroleum product pipeline in south Asia.
In addition, the MOU encompasses the development of storage terminals in Chitwan and a new transnational conduit that will connect IndianOil’s Siliguri facility to Jhapa.
Furthermore, the MOU’s scope includes a Jhapa oil storage terminal.
The B2B framework agreement empowers IndianOil and NOC to commence construction on these critical projects, which are designed to cater to Nepal's future energy requirements.
It is key for streamlining the transportation of petroleum products, potentially leading to cost reductions for NOC by decreasing dependency on tank trucks.
Moreover, the infrastructure aims to mitigate handling losses and environmental risks, alleviate border congestion and bolster Nepal’s energy security, particularly in the face of natural disasters such as floods and landslides.
Last month, IndianOil entered into a 15 year liquefied natural gas (LNG) supply agreement with Abu Dhabi National Oil Company, securing the annual supply of 1 million tonnes LNG.
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Read the article online at: https://www.worldpipelines.com/project-news/07102024/indianoil-and-nepal-oil-corporation-sign-agreement-for-petroleum-projects-in-nepal/
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