Nepal to Seek ATF Supply From India Via Cross-Border Pipeline

08 Dec 2025 CW Team

Nepal first began receiving diesel through the Motihari–Amlekhgunj pipeline in September 2019, later adding petrol and kerosene imports in early 2025. The fifth meeting of the Nepal–India Joint Working Group on Petroleum and Gas, scheduled for 8 December, will now consider Nepal’s proposal to transport Aviation Turbine Fuel (ATF) via the expanded pipeline network. A Cabinet meeting on Monday approved the Nepali delegation for the talks.

Shivaram Pokharel, Joint Secretary at the Ministry of Industry, Commerce and Supplies and head of the delegation, said Nepal will propose ATF supply once construction of the Amlekhgunj–Lothar extension in Chitwan is completed. The project is being developed with Indian support, while Nepal Oil Corporation (NOC) will build an ATF depot at Lothar using its own resources.

Work on extending the Motihari–Amlekhgunj pipeline to Lothar began in early August. Pokharel noted that the extended pipeline and the new depot will allow ATF to be transported directly to Lothar. Because of limited capacity at the Amlekhgunj depot, the ATF storage facility is being shifted to Lothar.

He added that the same pipeline can sequentially transport diesel, petrol, kerosene and ATF, with scientific safeguards ensuring no cross-contamination between fuels.

During the former Nepali Prime Minister’s visit to India in May–June 2023, both sides signed an MoU covering petroleum infrastructure between Siliguri and Jhapa, extending the Amlekhgunj–Lothar section, and constructing new terminals in Chitwan and Jhapa. The original cross-border pipeline, completed in 2019, was the first of its kind in South Asia.

Meanwhile, Nepal has recorded its first-ever import of Liquefied Natural Gas (LNG), with Yogya Holding—part of SG Group—beginning shipments from Indian Oil Corporation. The agreement for LNG supply was signed earlier this year.

Indian Petroleum Minister Hardeep Singh Puri described the maiden LNG export to Nepal as a “milestone operation”, highlighting India’s commitment to advancing regional energy security and expanding clean-energy partnerships.

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Nepal will hold discussions with India on supplying aviation fuel through the cross-border petroleum pipeline, with officials from both countries set to meet next week in New Delhi, a senior Nepali official confirmed on Wednesday. Nepal first began receiving diesel through the Motihari–Amlekhgunj pipeline in September 2019, later adding petrol and kerosene imports in early 2025. The fifth meeting of the Nepal–India Joint Working Group on Petroleum and Gas, scheduled for 8 December, will now consider Nepal’s proposal to transport Aviation Turbine Fuel (ATF) via the expanded pipeline network. A Cabinet meeting on Monday approved the Nepali delegation for the talks. Shivaram Pokharel, Joint Secretary at the Ministry of Industry, Commerce and Supplies and head of the delegation, said Nepal will propose ATF supply once construction of the Amlekhgunj–Lothar extension in Chitwan is completed. The project is being developed with Indian support, while Nepal Oil Corporation (NOC) will build an ATF depot at Lothar using its own resources. Work on extending the Motihari–Amlekhgunj pipeline to Lothar began in early August. Pokharel noted that the extended pipeline and the new depot will allow ATF to be transported directly to Lothar. Because of limited capacity at the Amlekhgunj depot, the ATF storage facility is being shifted to Lothar. He added that the same pipeline can sequentially transport diesel, petrol, kerosene and ATF, with scientific safeguards ensuring no cross-contamination between fuels. During the former Nepali Prime Minister’s visit to India in May–June 2023, both sides signed an MoU covering petroleum infrastructure between Siliguri and Jhapa, extending the Amlekhgunj–Lothar section, and constructing new terminals in Chitwan and Jhapa. The original cross-border pipeline, completed in 2019, was the first of its kind in South Asia. Meanwhile, Nepal has recorded its first-ever import of Liquefied Natural Gas (LNG), with Yogya Holding—part of SG Group—beginning shipments from Indian Oil Corporation. The agreement for LNG supply was signed earlier this year. Indian Petroleum Minister Hardeep Singh Puri described the maiden LNG export to Nepal as a “milestone operation”, highlighting India’s commitment to advancing regional energy security and expanding clean-energy partnerships.

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