INDIA’S LPG SUPPLY

NEWS: Even after the increase in production, around half of India’s LPG demand must still be met through imports.

ABOUT

• LPG (Liquefied Petroleum Gas) is a mixture of hydrocarbon gases, mainly: Propane, Butane
• It is widely used in India for: Cooking fuel (domestic cylinders), Commercial kitchens, Industrial applications

India’s LPG Production and Consumption

• Productionà In 2024–25, India produced about 13 million tonnes of LPG.
• Consumptionà India consumed about 31 million tonnes of LPG in the same year.
• Result Domestic production meets only about 40% of demand.
• Therefore: About 60% of LPG demand is met through imports.

Sources of Domestic LPG Production

• Crude Oil Production: Some LPG is naturally present in crude oil and is separated during the refining process.
• Oil Refineries: Produce LPG through Fluid Catalytic Cracking Units (FCCU).
• FCCU Process: Heavy fractions of crude oil are cracked into lighter products.
  • These lighter products include: LPG, Petrol, Other petroleum products
• Petrochemical Processing: During petrochemical refining, LPG and propylene are produced.
• Propylene is used to make polypropylene, which is important for plastics and synthetic rubber.

Government Measures

The government has directed refining companies to:

• Ensure propane and butane are not diverted excessively for petrochemical manufacturing.
• Prioritise LPG production for domestic consumption.
  • This helps maintain adequate supply for cooking gas.

Key Problem:

• Lack of Long-Term LPG Storage
• India lacks large strategic LPG storage facilities.
• Because of this:
  • The country cannot store LPG for long periods.
  • Any supply disruption in imports could cause shortages.

Way Forward

• Increase domestic LPG production through better refining and exploration.
• Build large LPG storage facilities to handle supply disruptions.
• Diversify import sources to reduce dependence on few countries.
• Improve transport and distribution systems for smooth supply.
• Promote alternative cooking fuels like PNG, biogas and electric cooking.