KATHMANDU: Nepal has proposed to India the construction of a gas pipeline and storage facility from Motihari to Sarlahi, aiming to strengthen long-term fuel supply and reduce dependency on costly transportation.
According to the Nepal Oil Corporation (NOC), the proposal was sent to India’s Ministry of Petroleum through the Indian Oil Corporation about a year ago, but a response is still awaited.
NOC Managing Director Chandika Bhatta said the project is crucial for ensuring energy security and improving the supply system. “Nepal urgently needs LPG pipelines and storage infrastructure capable of meeting at least 30 days of demand,” Bhatt said.
The proposal comes at a time when a sudden shortage of cooking gas has been reported in the Kathmandu Valley following escalating tensions in West Asia.
The NOC has directed industries to supply half-filled LPG cylinders to ease the shortage, though consumers say gas remains hard to find. The corporation has urged the public not to hoard, stating that imports remain steady.
Nepal consumes around 46,000 metric tons of LPG per month, with imports continuing at similar levels. However, officials admit that the lack of sufficient storage infrastructure leads to periodic supply disruptions.
Although the government has announced plans to build petroleum infrastructure capable of meeting demand for up to three months, storage systems for cooking gas are yet to be developed.
Bhatt noted that Nepal spends over Rs 6 billion annually on gas transportation, largely due to the absence of domestic gas bullets. “If pipelines and storage facilities are built, billions can be saved and supply will become more reliable,” he said.
Consumer rights activist Madhav Timilsina attributed the shortage to unclear petroleum storage policies and an unregulated distribution system, while also stressing the need to promote electricity use to reduce dependence on imported fuel.
Bhatt added that panic buying has created additional pressure in the market. “There is no issue with imports, but delays sometimes occur due to high demand during gas loading,” he said.
The NOC said it expects the distribution system to normalize soon and plans to resume supplying full LPG cylinders within a week.
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