KATHMANDU: Nepal and China on Wednesday signed an agreement in Beijing for the import of petroleum products from China to Nepal.

Nepal's state-owned fuel monopoly Nepal Oil Corporation (NOC) and China's state-owned company China National United Oil Corporation (PetroChina) signed a memorandum of understanding (MoU) in order to supply petroleum products from China today.

"It's a framework agreement for the import of petroleum products from China," Joint Secretary Madhu Marasini at the Ministry of Finance, who is a member of Nepali delegation, told THT Online over phone from Beijing.

This agreement has paved the way for commercial import of petroleum products to Nepal, he added "But we need to finalise pricing considering many factors."

According to the Nepal's Embassy in Beijing, the Nepali delegation, led by Ambassador Dr Mahesh Kumar Maskey, held talks with the high level officials of China's Ministry of Foreign Affairs and Ministry of Commerce to finalise the MoU and other related issues of bilateral cooperation earlier today.

Managing Director of Nepal Oil Corporation Gopal Bahadur Khadka and Vice-President of PetroChina Zhang Tong signed the MoU.

A separate contract was also signed for the expeditious delivery of 1,000 metric ton of petroleum products that China provided to Nepal as grant assistance to Nepal, the Nepali Embassy in China said.

Nepal is currently reeling under acute shortage of petroleum products after the Madhes-based parties intensified their agitation in the wake of promulgation of new Constitution on September 20 and obstructed the Nepal-India border.

READ ALSO: China "ready to assist" Nepal to relieve fuel shortage