India is set to revolutionize its liquefied petroleum gas (LPG) supply chain with the commissioning of the world’s longest LPG pipeline, a $1.3 billion project aimed at significantly reducing transportation costs and preventing hazardous road accidents. The state-run refiners are expected to fully operationalize the ambitious infrastructure by June.
“This will be a game changer in the LPG supply chain,” said N. Senthil Kumar, Director of Pipelines at Indian Oil, in an interview. “It’s like putting LPG on a conveyor belt.”
The 1,739-mile-long pipeline will run from Kandla on India’s western coast to the northern city of Gorakhpur. The project is a joint venture between Indian Oil, Bharat Petroleum, and Hindustan Petroleum under the banner of IHB Ltd. The first phase is set for commissioning in March, with full operations expected by mid-year.
Enhancing Safety and Efficiency
The new pipeline is expected to replace hundreds of LPG trucks that crisscross the country, transporting fuel from refineries to bottling plants. This transition will substantially lower the risk of road accidents caused by LPG tankers.
Recently, a tanker accident in Coimbatore caused widespread disruptions, highlighting the dangers of road transportation. In December, a catastrophic crash in Jaipur left 20 people dead, 45 injured, and damaged over three dozen vehicles when a truck collided with an Indian Oil tanker. These incidents underscore the urgent need for safer fuel transportation alternatives.
Growing Demand for LPG
India’s demand for LPG has surged over the past decade, with domestic consumption rising by 80% to 29.6 million tons in the fiscal year ending March 2024. This increase has outpaced the 47% growth in demand for refined oil products. A significant factor behind the spike is government-backed subsidies and discount programs initiated by Prime Minister Narendra Modi’s administration, aimed at encouraging low-income households to transition from polluting biomass fuels to cleaner LPG alternatives.
With the new pipeline, India aims to enhance supply chain efficiency, reduce carbon emissions from road transportation, and further expand LPG access to millions of homes across the nation. The project marks a major step in modernizing India’s energy infrastructure and bolstering fuel security.
