India is set to achieve a remarkable infrastructure milestone with the commissioning of the world’s longest liquefied petroleum gas (LPG) pipeline by June 2024. This ambitious project aims to drastically reduce transportation costs and improve safety in the supply chain.
- Project valued at $1.3 billion to enhance LPG transport efficiency
- Pipeline will replace hundreds of trucks, reducing accident risks
Transforming the LPG Supply Chain
India’s state-run refiners, including Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp., are spearheading this transformative project through a joint venture named IHB Ltd. The pipeline will stretch 2,800 kilometers from Kandla on the west coast to Gorakhpur in northern India. According to N. Senthil Kumar, director of pipelines at Indian Oil Corp, “This will be a game changer in the LPG supply chain. It’s like putting LPG on a conveyor belt.” The project, which has an estimated cost of $1.3 billion, is expected to replace the current reliance on truck transport, which is responsible for a significant number of road accidents. Recent incidents, such as a tanker overturning in Coimbatore and a tragic collision in Jaipur that resulted in 20 fatalities, have underscored the urgent need for safer transportation methods.
Capacity and Safety Improvements
Once fully operational, this pipeline will have an impressive annual capacity of 8.3 million tons, which will supply approximately 25% of India’s total LPG demand. Currently, around 70% of bottling plants depend on trucks for their LPG supply, making the pipeline a crucial infrastructure enhancement. The Petroleum and Natural Gas Regulatory Board has consistently urged refiners to expand pipeline infrastructure to accommodate the ever-growing domestic LPG consumption, which has surged by 80% over the last decade. This increase has been largely driven by government subsidies aimed at encouraging low-income households to transition from polluting biomass to cleaner LPG for cooking purposes. Kumar noted, “The first phase will be commissioned in March, with full operations beginning by mid-year,” indicating the project’s swift progress despite previous delays caused by the pandemic and geopolitical tensions.
Future Impact on Energy Infrastructure
The completion of this pipeline marks a significant step toward bolstering India’s energy infrastructure. With the existing LPG pipeline network already spanning nearly 5,000 kilometers, this expansion is expected to enhance safety and efficiency in the transportation of LPG. As domestic consumption continues to grow, the shift from road-based transport to pipeline delivery will not only reduce accident risks but also streamline the supply chain. Expert analysts predict that this project will set a precedent for future infrastructure developments across the energy sector, promoting greater reliance on safer and more efficient transport methods. As Kumar aptly stated, “This project is essential for managing growing volumes and enhancing safety in LPG distribution.”
