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New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) is planning to expand India’s pipeline network for safer and eco-friendly transportation of liquified petroleum gas (LPG), said Anil Kumar Jain, the chairperson of PNGRB.
In an interview with Mint, Jain noted that LPG consumption in the country would continue for at least the next couple of decades for cooking purposes.
“The role of LPG as a potent medium is there for the next 15 to 20 years minimum. Under these circumstances we need to consider what kind of logistical infra can be provided. Currently, the bulk LPG transport from ports and refineries to bottling plants can be made safer and more efficient,” he said, adding that out of the around 28 million tonnes of LPG consumed in the country, only about 9 million tonnes is transported through pipelines. Most of it is transported by tankers through roads and railways, which is also costly.
Safety concern
Along with reducing expenses, more use of pipelines would enhance energy security and increase safety, he said. The emphasis on safety gains importance as a recent collision of an LPG tanker and a truck on the Jaipur-Ajmer highway led to loss of 13 lives. Around 30 people survived burn injuries.
“The lifeline of a pipeline is at least 60 years. The fixed capital is recovered during that period. For long distances, pipelines are the most cost-effective. If it’s cheaper, then the subsidy outgo would also come down. Our target is to connect all the bottling plants in the country by pipeline in due course ,” Jain said.
Pipeline plan
On 10 December, the regulator came up with a proposal for development of nine LPG pipelines in the country with a cumulative length of 3,470 km that would connect 50 bottling plants with ports and refineries. These pipelines would have a capacity to carry 4.29 million metric tonnes of the cooking fuel per annum. PNGRB has sought views and suggestions from interest parties within 30 days of the of the public notice.
Some of the pipelines proposed include Cherlapally – Nagpur, connective six bottling plants; Shikrapur – Hubli – Goa, connecting seven plants; Mumbai – Aurangabad – Jalgaon; Paradip – Raipur; and Jalandhar – Jammu. The setting up of the pipeline between Shikarpur, Hubli and Goa would lead to savings of ₹1,030 core, 0.82 million road tanker trips and 1.4 million tonnes of CO2 emissions, according to a survey by Deloitte and PNGRB.
Out of the 210 LPG bottling plants in the country, only 54 are connected to 10 operational pipelines, as per the survey. Currently four pipelines are under construction which would take the number of total pipeline-connected bottling plants to 90.
According to the regulator, the expansion of the pipeline network would also ensure uninterrupted supply of LPG across the country, reduce energy consumption and minimize emissions by vehicles. Further, having the pipelines as common carriers or contract carrier pipeline infrastructure accessible to importers and traders of LPG would open up the market.
“The idea is to develop pipelines also as a business activity in the country and attract new players,” the PNGRB chairman said.
India’s LPG consumption
LPG consumption in the country has grown over the years and the government’s Pradhan Mantri Ujjwala Yojana wherein cyliders are provided at a subsidized price to the poor has helped increase household consumption of LPG. Data from the Petroleum Planning And Analysis Cell (PPAC) showed a 6.8% growth in the consumption of LPG so far in this fiscal (April-November) to 20.4 million tonnes, from 19.1 million tonnes during the same period last fiscal.
India produced less that half of the overall consumption and the the rest is imported. In the April-November of FY25, India’s domestic production of the fuel stood at 8.4 million tonnes, about 41% of the total consumption of 20.4 million tonnes so far.
LPG consumption is primarily driven by domestic sector which accounts of 89%, and the rest comprises non-domestic sector and Auto LPG.
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