Kathmandu, Aug. 7: Nepal remains highly vulnerable to recurring cooking gas shortages because it has no strategic LPG storage facility, allowing even minor disruptions to supplies from India to quickly hit the domestic market.
While the Nepal Oil Corporation (NOC) stores aviation fuel, petrol, diesel and kerosene, it has no storage infrastructure for liquefied petroleum gas. Instead, private bottling companies import LPG from the Indian Oil Corporation (IOC), refill cylinders and distribute them directly, leaving little reserve when demand rises or supply is interrupted.
Former NOC Executive Director Umesh Prasad Thani said a strategic storage facility would allow the corporation to release reserve stocks during periods of high demand and prevent shortages.
Nepal has 59 LPG bottling plants with a combined storage capacity of 11,000 metric tonnes, according to the Nepal LPG Gas Industries Association. However, companies do not maintain large inventories because of the high investment required.
Association Chairman Diwan Chand said the private sector has repeatedly urged the NOC to build a storage facility and is willing to invest jointly if needed.
Gas consumption has risen sharply in recent weeks. Nepal normally requires 80 to 90 LPG bullet tankers a day, but demand has climbed to around 120 tankers. Monthly consumption, usually between 45,000 and 48,000 metric tonnes, is expected to reach 55,000 metric tonnes this month.
Chand said limited storage means even brief supply disruptions create shortages. He also called for an LPG pipeline from India, saying it would lower transport costs, improve supply security and reduce recurring shortages.
NOC LPG Department Chief Vineet Mani Upadhyay said the corporation has begun discussions with the IOC on both a cross border LPG pipeline and construction of storage infrastructure.
The NOC bought land in Sarlahi nearly a decade ago for an LPG storage project, but construction has yet to begin. The corporation says it has revived the plan and formed a committee to study storage capacity requirements and the feasibility of the proposed pipeline.
The NOC estimates that 115 to 120 LPG bullet tankers, carrying around 2,000 metric tonnes of gas, enter Nepal each day. Officials say developing strategic reserves is essential to protect the country against border disruptions, global supply shocks and sudden spikes in demand.
People’s News Monitoring Service
Login to add a comment