December 3rd 2025.
The nation of Nepal is gearing up for an important discussion with India regarding the supply of aviation fuel through the cross-border petroleum pipeline. According to a senior official from Nepal, the two countries are set to meet next week in New Delhi. This comes as a significant move towards strengthening the partnership between the two nations.
In September 2019, Nepal successfully began transporting diesel through the Motihari–Amlekhgunj cross-border petroleum pipeline. This was followed by the import of petrol and kerosene through the same pipeline in early 2025. As the fifth meeting of the Nepal-India Joint Working Group on Petroleum and Gas approaches on December 8, Nepal is determined to bring up the issue of supplying Aviation Turbine Fuel (ATF) through the cross-border pipeline. The Nepali delegation has been approved by the Cabinet and will be led by Shivaram Pokharel, Joint Secretary at the Ministry of Industry, Commerce, and Supplies.
Mr. Pokharel stated that Nepal plans to propose the supply of ATF through the pipeline once the ongoing construction of the petroleum pipeline from Amlekhgunj to Lothar in Chitwan district is completed. The project is being undertaken with Indian assistance, while Nepal Oil Corporation (NOC) is planning to develop an ATF depot at Lothar using its own resources. The current phase of the pipeline extension project, which began in August this year, aims to extend the Motihari–Amlekhgunj pipeline to Lothar.
The Joint Secretary further added that once the extended pipeline and ATF depot are completed, Nepal will be able to transport ATF directly to Lothar through the pipeline. This will be discussed in detail at the upcoming meeting between the two countries. Due to space constraints at the Amlekhgunj depot in Bara district, the ATF depot has been planned for Lothar.
The same pipeline can be used to transport other petroleum products such as diesel, petrol, and kerosene, along with ATF. To ensure that there is no contamination among these different fuels, a necessary scientific process has been put in place. This will prevent one type of fuel from adulterating another when supplied sequentially.
The signing of a memorandum of understanding between the two countries in 2023 during the former Nepali Prime Minister's visit to India was a significant step towards constructing petroleum supply infrastructure between Siliguri and Jhapa. It also included extending the existing pipeline from Amlekhgunj to Lothar and building two greenfield terminals in Chitwan and Jhapa. The completion of the cross-border pipeline in 2019 marked a historic moment for South Asia.
In other news, a private company in Nepal has recently started importing Liquefied Natural Gas (LNG) from India. Yogya Holding, a subsidiary of SG Group, has begun importing LNG from the Indian Oil Corporation, marking the first-ever import of such gas from India. The agreement for the supply of LNG was signed earlier this year between the two sides.
In a recent social media post, Indian Minister for Petroleum and Natural Gas Hardeep Singh Puri expressed his delight at the first-ever supply of LNG to Nepal. He called it a "milestone operation" that showcases India's commitment to advancing regional energy security. The Indian Oil Corporation's export of LNG to Nepal is a significant step towards promoting cleaner energy and strengthening regional partnerships.
All in all, these developments in the energy sector between Nepal and India are a positive step towards improving bilateral relations. Both countries are determined to work together towards achieving a more sustainable and secure future for the region.
Orissa POST – Odisha's No.1 English Daily
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