IndianOil supply pact to shield Mauritius from price volatility, ensure energy security: Govt
New Delhi: The five-year agreement between Indian Oil Corporation Limited (IOCL) and the State Trading Corporation (STC) of Mauritius is an assured long-term supply commitment to Mauritius, providing the country with security of supplies and shielding it from price volatility, the government said on Saturday.
This is the first long-term supply agreement concluded by an Indian PSU oil marketing company outside South Asia in recent years.
The long-term pact was signed during Petroleum and Natural Gas Minister Hardeep Singh Puri’s visit to Mauritius this week.
According to an official statement, India has emerged as a major global refining hub, with an annual output of 267 MMT of refined petroleum products across 23 refineries, making it a net exporter of refined products.
The country already meets the petroleum demand of Nepal and Bhutan and supplies significant quantities to other countries in the region and beyond.
Even during the ongoing West Asia crisis, India has fulfilled its supply commitments to Nepal and Bhutan, making it a dependable energy security provider for the region.
“The agreement with Mauritius positions India as the country’s anchor fuel supplier and strengthens India’s strategic and economic footprint in the Indian Ocean region,” said the petroleum ministry.
Under the agreement, IOCL will supply the entire import requirement of Mauritius of Motor Spirit (MS), High Speed Diesel (HSD) and Aviation Turbine Fuel (ATF).
The MoU on oil and gas cooperation institutionalises the longstanding energy partnership between the two countries, covering petroleum products supply, training and capacity building for Mauritian officials and biofuels cooperation.
The statement further stated that it further provides for cooperation in biofuels through exchange of knowledge, research and training.
Mauritius is a founding member of the Global Biofuels Alliance (GBA), an initiative piloted by India and launched during India’s G20 Presidency.
As part of its country engagement programme, the GBA Secretariat has partnered with Mauritius’ Ministry of Energy and Public Utilities in developing a Biofuels Country Landscape Policy framework for the country.