In another landmark move for Biratnagar, Prime Minister KP Sharma Oli inaugurated a new biogas plant and gas pipeline system at Jatuwa of Biratnagar Metropolis-14, Morang.

The latest move is in line with Oli Government’s long-standing commitment to end the usage of LPG cylinders for domestic purposes by setting up gas pipelines across the country.

Surprisingly, this is not a government’s move! First such move came from a Jatuwa-based organization called Shree Krishna Gau Sewa Sadan.

The new biogas plant uses dung produced by the domesticated cows at the organization’s Gaushala (area where cows are protected) and is currently producing 160 kg gas per day, which can cater to the domestic needs of 150 households.

Under phase-1 of the project, the organization has set up gas pipelines up to 400 meters and is supplying the gas to nearly 32 families at a cost of Rs 84 per kilogram.

“This gas plant will replace around 1,000 gas cylinders in a year,” says Gyanendra Singh, an official from the District Coordination Committee.      

The organization has been working under the World Bank support and in collaboration with the Energy Development Company.

Though decided on generating power through biogas in the FY 2017-18, the organization later decided to produce gas for households owing to decrease in load-shedding.

Committed to protection of cows and effective utilization of cow produce, the organization now cares for around 205 cows.

Hope, more such organizations and additional public participation would add to the government’s efforts towards 100 percent replacement of the LPG cylinders usage in the country.

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This became evident in one of the recent developments that saw a Japanese firm stepping up its efforts to enter the Nepali gas market as part of its business expansion in Asia.

Tapping on Nepal’s growing energy demand that increased aftermath of the 2015 earthquake, a Japanese LPG distributor Saisan Co. formed a joint venture with Gas One Nepal Private Ltd., thus becoming the first foreign player in the Nepali LPG market besides Indian firms.

Though firewood has been the primary source of fuel in Nepal, there is now a sharp rise in demand for LPG in the country because of its advantages such as stable supply and minimized air pollution compared to wood fuel.

While there are a total of 58 LPG suppliers in Nepal, there is hardly any city gas network even in the capital city Kathmandu.

Despite the high LPG demand among the city’s hotels and restaurants, the city’s diffusion rate is estimated to be only 20 percent leaving scope for further expansion.

Tapping Nepal’s LPG Demand

The LPG demand in Nepal has seen its new high as a result of the Nepal Government’s new economic reforms and recovery efforts aftermath the devastating 2015 earthquake that shook the country’s landscape.

The Japanese firm is keen on tapping the country’s gas demand, which it says has increased from 260,000 tons in 2016 to 300,000 tons in 2017 at an annual growth rate of 10 percent.

According to Satoki Koike, who heads the Saisan’s overseas business division, Nepal has good growth potential like any countries and is most likely to see a 500,000 tons LPG demand in the future.

“We want to provide safe and highly efficient products, so we can gain market trust,” Koike said referring to the locals’ call for safety measures as a result of recently-reported gas explosions in Nepal due to defects in LPG tanks.

The local joint venture is currently operating in the southern regions in the Indian border area and is eyeing the Kathmandu market in the near future.

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