Saisan Co is a Japanese distributor of liquefied petroleum gas, commonly known as LPG. It is set enter Nepali gas market with a joint venture with a local partner creating Gas One Nepal Pvt. Ltd. This makes it the first foreign participant in Nepal’s growing LPG market besides firms from neighboring India.
Nepal has a total of 58 firms providing their LPG. LPG demand is growing as LPG offers more stable supply to the previously used firewood and also doesn’t cause air pollution.
Nepal also doesn’t have any city gas network and even in the capital Kathmandu, hotels and restaurants rely on LPG. However the city diffusion rate for the gas is estimate dot be only at 20 percent and this leaves room for expansion
The country’s gas demand has grown at an annualized rate of 10 percent since 2015 and LPG demand rose from 260000 tons in 2016 to 300000 tons in 2017 according to data compiled by Saisan.
According to Satoki Koike who is the current head of Saisan overseas business division has assumed the post of the president in the new joint venture commented that LPG demand is expected to reach 500000 tons annually in upcoming years:
“Nepal has growth potential just as other Asian countries.”
The venture is expected to operate in the southern region near Indian border.
About Saisan Co
Headquartered in Japan, Saisan Company supplies gas energy for household, medical and industrial as well as various high pressure gas equipment and gas supply plant construction services.