India Set to Unveil World’s Longest LPG Pipeline by June – What This Means for the Future

GlobalData reports that India’s state-run refiners are almost done with the world’s longest liquefied petroleum gas (LPG) pipeline. It should be running by June, making the supply chain much more efficient.

This $1.3 billion project will replace many trucks that currently transport fuel across the country. This change will cut transportation costs and lower the risk of accidents. The pipeline, which stretches 2,800 km from Kandla in the west to Gorakhpur in the north, is a joint effort by Indian Oil, Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL).

N. Senthil Kumar, the chairman of the project, says, “This will be a game changer in the LPG supply chain. It is like putting LPG on a conveyor belt.” The first part of the pipeline will be ready in March, with full operations expected by the middle of the year.

Once completed, the pipeline will transport about 8.3 million tons of LPG each year, which meets around 25% of India’s total demand. Right now, about 70% of bottling plants get their LPG via trucks. The Petroleum and Natural Gas Regulatory Board has been pushing for more pipelines to handle increasing LPG demand and lower the chances of road accidents.

The use of LPG in homes for cooking has jumped 80% over the last ten years, reaching 29.6 million tons in the fiscal year ending March 2024. This surge is partly due to government subsidies that help low-income families move away from using harmful biomass fuels for cooking. In contrast, the demand for other refined oil products only rose by 47% during the same period.

The project has faced challenges since its start in 2019, including setbacks from the pandemic and material sourcing issues linked to the Ukraine conflict. India’s current LPG pipeline network is nearly 5,000 km long. According to GlobalData, India will lead in building new trunk and transmission oil and gas pipelines in Asia, making up over 40% of new pipeline lengths by 2028.

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