Kathmandu, Oct 3 : Marking a key milestone in the India-Nepal energy partnership, the Indian Oil Corporation (IOC) on Thursday signed a business-to-business (B2B) framework agreement with the Nepal Oil Corporation (NOC).

The collaboration, signed in the presence of Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas, will enhance energy security and optimise petroleum logistics, particularly for the hilly terrains.

"IndianOil's pivotal role in these projects is commendable, and their timely execution will further strengthen ties between India and Nepal," said Jain.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, posted on X that this collaboration will "strengthen petroleum infrastructure, reducing costs, and bolstering supply security for Nepal citizens and the economy under the leadership of Prime Minister Narendra Modi and his vision of Vasudhaiva Kutumbakam".

The Framework Agreement will extend the existing petroleum pipeline to Chitwan, construct a new pipeline from Siliguri to Jhapa, and build two terminals to connect major demand centres at Jhapa and Chitwan in Nepal, the minister informed.

It is a "testament to our commitment to a stronger, more resilient partnership. #NeighborhoodFirst", Minister Puri added.

Earlier this month, the minister acknowledged the "extraordinary contributions" of the IOC and wished the organisation "continued success in its journey of excellence".

"Even as the entire world suffered 40-70 per cent fuel inflation during the last 3 years, this spirit of IndianOil kept Indian citizens insulated from soaring global fuel prices, as PM@narendramodi Ji didn't want our citizens, especially the vulnerable ones, to suffer from crises of fuel availability, affordability and sustainability," Minister Puri had said in a post on X.

This remarkable journey is a testament to the enduring legacy of India's Oil and Gas industry and to the relentless dedication of "nearly 30,000 IOCians and the six lakh-strong extended workforce who, through their indomitable spirit, ensure that India continues to march ahead towards becoming the 3rd largest economy!' the minister had said.

/IANS