The government has set refinery- and company-wise LPG production targets for public and private sector refiners, as well as upstream oil and gas producers, for the first time to improve India’s energy security and lessen the effects of disruptions in imported cooking gas supplies.
Through an order, the Petroleum and Natural Gas Ministry has established a structure that requires 21 refineries and upstream businesses to increase LPG output whenever supply bottlenecks occur. The overall production potential under the new framework has been established at 63,810 tons per day, which is much more than the nation’s typical domestic output and around 70% of India’s daily LPG consumption.
The action was taken in response to the ongoing turmoil in West Asia, which revealed India’s reliance on imported LPG supply. India uses roughly 91,000 tons of LPG per day, or 33.2 million tons per year. Only 13.1 million tons are produced locally, and imports meet over 64% of demand, most of which comes across the Strait of Hormuz.
The government was compelled to take emergency measures during the Iran-related crisis earlier this year, including telling refiners to maximize LPG production by rerouting petrochemical feedstock streams due to interruptions in shipping via the critical waterway.
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