Indian Oil and Nepal Oil Sign Agreement to Expand Petroleum Pipeline
In New Delhi, Indian Oil Corporation Limited and Nepal Oil Corporation have signed a Business to Business (B2B) framework agreement to extend the Motihari-Amlekhgunj Petroleum Pipeline (MAPL) and build oil storage terminals in Chitwan. This follows a previous Government-to-Government (G2G) Memorandum of Understanding signed on May 31, 2023, between India’s Ministry of Petroleum and Natural Gas and Nepal’s Ministry of Industry, Commerce and Supplies.
Pipeline Expansion and New Projects
The MAPL, South Asia’s first transnational petroleum pipeline, was commissioned in 2019. The new agreement includes constructing oil storage terminals in Chitwan and a new pipeline from IndianOil’s Siliguri facility to Jhapa, along with a storage terminal there.
Statements from Key Figures
Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, emphasized the importance of the pipeline extension for Nepal’s energy needs, stating that affordable and reliable fuel is crucial for GDP growth. V Satish Kumar, Chairman and Director of Marketing at Indian Oil, highlighted the strengthened energy partnership between India and Nepal, enhancing energy security for both nations.
Benefits of the Collaboration
The projects aim to transform petroleum logistics between the two countries, meeting Nepal’s future energy needs with ample storage capacity. The collaboration will optimize petroleum transportation, reduce costs for Nepal Oil Corporation, and mitigate environmental risks and border congestion. It will also strengthen Nepal’s energy security, especially during natural disasters.
Doubts Revealed
Indian Oil Corporation Limited -: Indian Oil Corporation Limited is a large company in India that deals with oil and gas. It helps provide fuel for vehicles and other energy needs in the country.
Nepal Oil Corporation -: Nepal Oil Corporation is a company in Nepal that manages the supply and distribution of oil and gas in the country. It ensures that people in Nepal have access to fuel for their daily needs.
B2B agreement -: A B2B agreement is a business-to-business agreement where two companies decide to work together. In this case, Indian Oil and Nepal Oil are working together to improve oil supply between their countries.
Motihari-Amlekhgunj Petroleum Pipeline -: The Motihari-Amlekhgunj Petroleum Pipeline is a pipeline that carries oil from India to Nepal. It helps transport fuel efficiently between the two countries.
G2G MoU -: G2G MoU stands for Government-to-Government Memorandum of Understanding. It’s an agreement between two governments to work together on certain projects or initiatives.
Chitwan -: Chitwan is a district in Nepal where the new oil storage terminals will be built. It is known for its national park and wildlife.
Transnational petroleum pipeline -: A transnational petroleum pipeline is a pipeline that crosses the borders of two or more countries to transport oil. It helps in sharing resources and improving energy supply between nations.
Energy connectivity -: Energy connectivity means having a network that allows the easy flow of energy, like oil or electricity, between different places. It helps ensure that energy is available where it is needed.
Energy security -: Energy security means having a reliable and steady supply of energy, like oil or gas, so that a country can meet its energy needs without interruptions.