The Nepal Oil Corporation (NOC) is accelerating the construction of several major cross-border petroleum and liquefied petroleum gas pipelines in collaboration with India, marking a significant shift in the landlocked nation’s energy infrastructure.

NOC Executive Director Chandika Prasad Bhatta announced that the multi-billion-rupee initiative aims to modernize fuel transit, reduce heavy reliance on tanker trucks, and ensure a more stable energy supply. 

The expansion is centered on two primary petroleum routes: the 62-kilometer Amlekhgunj–Chitwan pipeline and the 50-kilometer Siliguri–Jhapa pipeline, with a combine cost of Rs 15 billion (approximately $103.1 million). 

According to Bhatta, the infrastructure will be financed through grants provided by the Indian Oil Corporation, a long-standing partner in Nepal’s energy sector.

In addition to the pipeline network, the NOC is committing Rs 8 billion (approximately $59.4 million) of its own funds to construct a massive fuel storage facility in Chitwan. 

This terminal is expected to serve as a strategic hub, allowing for larger reserves and more efficient distribution to the country’s central and western regions.

The cooperation also extends to cooking gas. A proposed Rs 12 billion (approximately $82.5 million) LPG pipeline stretching from Motihari, India, to Sarlahi, Nepal, is currently under development. 

Officials project that this pipeline alone will slash annual transportation costs by approximately Rs 6 billion (approximately $41.2 million), as it bypasses the logistical bottlenecks and expenses associated with road transit.

Beyond the financial savings, the project is expected to bolster fuel security in specific regions that have historically faced supply volatility. 

Bhatta noted that the Siliguri–Jhapa line, in particular, will provide a direct and reliable energy link to Koshi Province.

The transition from road-based transport to a dedicated pipeline network is anticipated to reduce the environmental footprint of fuel delivery and minimize traffic congestion on major highways. 

While a finalized completion date has not been set, the NOC has designated these projects as high-priority "national pride" initiatives to support Nepal's growing energy demands.