Kathmandu. Nepal has proposed to India the construction of a gas pipeline and storage-transport dependent facility from Motihari to Sarlahi with the aim of strengthening long-term fuel supplies and reducing costly emissions.

According to Nepal Oil Corporation (NOC), this proposal has been sent to the Petroleum Ministry of India through Indian Oil Corporation. The proposal comes at a time when Kathmandu Valley has witnessed a sudden shortage of LPG due to rising tensions in West Asia. NOC has directed industries to supply half-filled LPG cylinders to mitigate the shortage.

NOC Managing Director Chandika Bhatt said that this project is of utmost importance to ensure energy security and improve the supply system. He said Nepal urgently needs LPG pipelines and storage infrastructure that can meet the demand for at least 30 days. Bhatt said that due to shortage of domestic gas bullets (tankers), Nepal spends more than Rs 6 billion every year on gas transportation. He said if pipelines and storage facilities are built, billions of rupees will be saved and the supply will become more reliable.

Bhatt also said that panic buying has put additional pressure on the market. He said there is no problem with imports, but there are sometimes delays during gas loading due to high demand. The NOC said the distribution system is expected to return to normal soon and plans to resume full LPG cylinder supply within a week.

Nepal consumes about 46,000 metric tonnes of LPG every month and imports also continue at almost the same level. However, officials admit that there are supply disruptions from time to time due to lack of adequate storage infrastructure. Although the government has announced plans to build petroleum infrastructure capable of meeting demand for up to three months, a storage system for LPG has not yet been developed.