By June, India’s state-run refiners will complete the commissioning of the world’s longest liquefied petroleum gas pipeline, marking a significant milestone that will substantially reduce fuel transportation costs and mitigate the risk of fatal road accidents, Rigzone reported.
“This development will revolutionize the LPG supply chain,” noted N. Senthil Kumar, Director of Pipelines at Indian Oil Corp., in an interview. “It’s akin to moving LPG along a conveyor belt, streamlining the process efficiently.”
The $1.3 billion project is expected to significantly reduce the reliance on hundreds of trucks that currently transport fuel across the country, thereby lowering the risk of accidents. Recently, a tanker accident in Coimbatore caused disruptions, while a tragic incident in Jaipur resulted in 20 fatalities, 45 injuries, and extensive vehicle damage. Indian Oil, Bharat Petroleum Corp., and Hindustan Petroleum Corp. have collaborated to establish IHB, which is constructing the 2,800-kilometer pipeline from Kandla to Gorakhpur. The initial phase is set to begin operations in March, with full operational capacity anticipated by mid-year, as stated by Kumar, the joint venture’s chairman.
The pipeline will have the capacity to transport approximately 8.3 million tons of LPG annually, meeting about 25% of India’s total demand. This development is expected to significantly reduce transportation costs, as currently, around 70% of bottling plants rely on trucks for LPG delivery. The Petroleum and Natural Gas Regulatory Board has been advocating for more pipelines to manage increased volumes and prevent major road accidents.
Over the past decade, domestic LPG consumption has increased by nearly 80%, reaching 29.6 million tons by March 2024. This growth surpasses the 47% rise in demand for refined oil products during the same period. The surge in LPG sales has been supported by government incentives, particularly discounts offered by Prime Minister Narendra Modi’s administration to encourage low-income households to switch from biomass to cleaner LPG for cooking.
