Will Nepal and India Discuss Aviation Fuel Supply via Pipeline?
Synopsis
Key Takeaways
- Nepal and India are set to discuss aviation fuel supply.
- Discussions are scheduled for December 8 in New Delhi.
- ATF depot to be built at Lothar with NOC resources.
- First LNG imports from India have begun.
- Efforts to enhance regional energy cooperation are underway.
Kathmandu, Dec 3 (NationPress) Nepal is preparing to engage in discussions with India regarding the provision of aviation fuel via the cross-border petroleum pipeline, as officials from both nations are set to convene next week in New Delhi, a high-ranking Nepali official disclosed on Wednesday.
Nepal commenced its diesel transportation through the pipeline for the first time in September 2019, following the successful launch of the Motihari–Amlekhgunj cross-border petroleum pipeline. Additionally, the nation began the importation of petrol and kerosene through this pipeline in early 2025.
The fifth session of the Nepal–India Joint Working Group on Petroleum and Gas is scheduled to take place on December 8, where Nepal intends to propose the supply of Aviation Turbine Fuel (ATF), utilized in aircraft, through the cross-border pipeline. A Cabinet meeting on Monday has sanctioned the delegation headed to New Delhi for these discussions.
“We plan to suggest the supply of ATF to Nepal through the pipeline once the ongoing construction of the petroleum pipeline from Amlekhgunj to Lothar in Chitwan district reaches completion,” stated Shivaram Pokharel, Joint Secretary at the Ministry of Industry, Commerce, and Supplies, who will lead the Nepali delegation.
This project is currently being executed with assistance from India, while Nepal Oil Corporation (NOC) aims to establish an ATF depot at Lothar using its own resources.
Presently, NOC is working on the pipeline extension project with support from India. This phase, which commenced in early August this year, entails the extension of the Motihari–Amlekhgunj pipeline to Lothar.
Pokharel elaborated that once the extended pipeline and ATF depot are operational, Nepal aims to transport ATF via pipeline to Lothar. “We will start discussions on this topic during the upcoming meeting,” he remarked. Due to limited space at the Amlekhgunj depot in Bara district, the ATF depot is being planned for Lothar, he added.
According to him, the same pipeline is capable of transporting diesel, petrol, kerosene, and ATF. To avoid contamination among different petroleum products, a necessary scientific process has been implemented to ensure that one type of fuel does not taint another when supplied in succession.
During the visit of the former Nepali Prime Minister to India in May–June 2023, both sides signed a memorandum of understanding to construct petroleum supply infrastructure between Siliguri and Jhapa, extend the existing pipeline from Amlekhgunj to Lothar, and establish two greenfield terminals in Chitwan and Jhapa.
When the cross-border pipeline was finalized in 2019, it became the first of its kind in South Asia.
Simultaneously, a private company in Nepal recently started importing Liquefied Natural Gas (LNG) from India for the first time just over a week ago.
Yogya Holding, a subsidiary of SG Group, known for bottling and distributing liquefied petroleum gas, recently initiated LNG imports, marking the inaugural import of such gas from the Indian Oil Corporation. An agreement for the LNG supply was signed earlier this year.
In a recent social media update, Indian Minister for Petroleum and Natural Gas Hardeep Singh Puri described the first-ever supply of LNG to Nepal as a “milestone operation”, emphasizing India's steadfast commitment to enhancing regional energy security.
He remarked that the commencement of LNG exports from the Indian Oil Corporation to Nepal represents a significant advancement in promoting cleaner energy and strengthening regional collaboration.