China reaches agreement with Nepal to supply petroleum products

China has reached an agreement with Nepal to supply petroleum products to this landlocked nation which has been trying to reduce its dependence on India for supply.

The two countries said they have “agreed to conclude a commercial deal on the supply of petroleum products from China to Nepal,” following the visit by Nepal’s Prime Minister K.P. Oli to China’s capital Beijing.

Nepal is targeting to import as much as a third of its annual petroleum products demand of 1.8 million tonnes from China.

Under the agreement, companies will be encouraged to speed up negotiations on issues including transportation, quality control, and customs and frontier formalities, according to a joint statement from the two governments.

China also plans to build oil storage facilities in Nepal.