India's state-run refiners are nearing the completion of the world's longest liquefied petroleum gas (LPG) pipeline, which is expected to start operations by June and enhance supply chain efficiency, reported Bloomberg.
The project, valued at $1.3bn, is set to replace numerous trucks currently traversing the country, thereby reducing fuel transportation costs and the potential for accidents.
Indian Oil, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have jointly established IHB to create the 2,800km pipeline, which will extend from Kandla in the west to Gorakhpur in the north.
Indian Oil director of pipelines and IHB chairman N. Senthil Kumar said: "This will be a game changer in the LPG supply chain. It is like putting LPG on a conveyor belt."
The first phase of the pipeline will be commissioned in March, with full operation expected by mid-year.
The network is designed to transport approximately 8.3 million tonnes (mt) of LPG annually, covering around 25% of India's total demand.
Currently around 70% of bottling plants receive their supply via road transport. The Petroleum and Natural Gas Regulatory Board has been advocating for more pipelines to manage increasing volumes and prevent major road incidents.
LPG usage in India, primarily for household cooking, has increased by four-fifths over the past decade, reaching 29.6mt in the fiscal year ending in March 2024. This growth has outstripped the 47% rise in demand for other refined oil products.
The sales boost has been supported by government subsidies aimed at encouraging low-income households to shift away from using polluting biomass for cooking.
Despite its significance, the project has faced several setbacks since its announcement in 2019, including delays due to pandemic lockdowns and material sourcing issues exacerbated by the conflict in Ukraine. India's existing LPG pipeline network spans nearly 5,000km.
India is expected to be at the forefront in terms of trunk/transmission oil and gas pipeline network additions in Asia, accounting for more than 40% of the region’s total pipeline length additions by 2028, according to GlobalData.
"India to commission world’s longest LPG pipeline by June" was originally created and published by Offshore Technology, a GlobalData owned brand.
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