India’s state-owned refiners are set to complete the world’s longest liquefied petroleum gas (LPG) pipeline by June, a major milestone expected to significantly reduce fuel transportation costs and mitigate the risk of fatal road accidents.
“This will be a game changer in the LPG supply chain,” stated N. Senthil Kumar, director of pipelines at Indian Oil Corp., in an interview. “It’s like putting LPG on a conveyor belt.”
The $1.3 billion infrastructure project is anticipated to replace hundreds of trucks currently transporting LPG from refineries to bottling facilities across the country, a method that increases the risk of accidents. A recent example was seen last month when a tanker overturned in Coimbatore, causing disruptions in the southern city. Similarly, in December, an accident involving an Indian Oil truck in Jaipur resulted in 20 fatalities, 45 injuries, and damage to three dozen vehicles.
Indian Oil, Bharat Petroleum Corp., and Hindustan Petroleum Corp. have collaborated to establish IHB, a joint venture responsible for constructing the extensive 2,800-kilometer pipeline. This network will stretch from Kandla on India’s west coast to Gorakhpur in the north. According to Kumar, who also serves as the chairman of the joint venture, the first phase is slated for commissioning in March, with full-scale operations expected by mid-year.
The pipeline will have the capacity to transport approximately 8.3 million tons of LPG annually, accounting for around 25% of India’s total demand. This development is set to notably cut transportation expenses in the world’s third-largest consumer of the fuel, as nearly 70% of bottling plants still rely on truck deliveries. In response to growing volumes and safety concerns, the Petroleum and Natural Gas Regulatory Board has been advocating for the expansion of the nation’s pipeline infrastructure.
Domestic consumption of LPG, primarily used for cooking, has surged by 80% over the past decade, reaching 29.6 million tons in the fiscal year that ended in March 2024. This increase has surpassed the 47% growth seen in overall demand for refined oil products. The rise in LPG usage has been largely driven by government subsidies under Prime Minister Narendra Modi’s administration, which aims to encourage low-income households to transition away from polluting biomass fuels for cooking.
Despite its significance, the project has faced multiple setbacks since its announcement in 2019. Delays were caused by pandemic-induced lockdowns as well as supply chain disruptions stemming from Russia’s war in Ukraine. India’s current LPG pipeline network spans nearly 5,000 kilometers, and this latest expansion marks a crucial step in strengthening the country’s energy infrastructure.