Govt rolls out Rs 12,500 crore LPG pipeline network to cover 2,500 km

Amid the mounting LPG supply crisis due to the Iran war, which has led to global disruptions, India has begun developing infrastructure for liquefied petroleum gas (LPG) pipelines. The Petroleum and Natural Gas Regulatory Board (PNGRB) is in the process of concluding bid proposals for four pipelines, with an estimated investment of Rs 12,500 crore.

As part of this initiative, nine LPG pipeline projects have been identified for development. The Petroleum and Natural Gas Regulatory Board (PNGRB) initiated suo motu proposals and conducted bidding for these pipelines. The board said it has stepped up the bidding process for LPG pipeline infrastructure to minimise bulk transportation to the extent possible.

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The cumulative length of these proposed pipelines is ~2500 km, reflecting the scale and strategic importance of the initiative, it said. The four pipelines include the Cherlapally–Nagpur Pipeline, Shikrapur–Hubli– Goa Pipeline, Paradip–Raipur Pipeline, and Jhansi–Sitarganj Pipeline.

According to a press release by the regulatory body, the proposed pipelines are designed to connect key supply sources, including refineries and import terminals, with LPG bottling plants, thereby ensuring seamless evacuation and distribution of LPG across multiple regions.

“In view of precedent accidents associated with LPG transportation by road, the modal transfer from road to pipelines would reduce risks involved in road transportation, ensuring safer and more dependable delivery,” the board said.

The board added that eliminating the bulk transportation of LPG through this project would significantly reduce greenhouse gas emissions and contribute to India’s climate goals by replacing fuel transportation via tankers with an efficient pipeline system.

While addressing the media, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum & Natural Gas, said, “Our domestic LPG supply, including petrol and diesel, is normal. There have been no reports of any dry-out of LPG at any distributor. Also, regarding auto LPG, in February, public sector oil marketing companies sold 177 tons of auto LPG per day, compared to approximately 296 tons per day in April.”

“State-wise, Karnataka, Tamil Nadu, Telangana, Rajasthan, and West Bengal are seeing significant increases in auto LPG sales. The Government of India is trying to expand the PNG network to reduce the pressure on LPG. State governments have also been urged to grant deemed approval to all pending applications. Operations at our petrol pumps are normal, with ample supplies of petrol and diesel. Refineries are operating at optimal capacity. Crude oil stocks are sufficient. Domestic LPG production has been increased to support domestic supply. We have ample supply, so do not believe rumours and buy petrol, diesel, and LPG only as needed,” she said.

The Strait of Hormuz has been significantly affected due to the Iran war, leading to a huge supply chain disruption.

In a latest presser, Additional Secretary of the Ports, Shipping and Waterways Ministry, Mukesh Mangal, said, “All Indian seafarers in the region are safe, and no incident involving an Indian-flagged vessel has been reported in the past 24 hours… Post operations are normal across the country, with no congestion recorded.”