Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) have become central to India’s energy transition by promoting clean cooking, industrial growth, and lower carbon emissions. Government initiatives such as the Pradhan Mantri Ujjwala Yojana (PMUY) and expansion of LNG infrastructure have significantly increased access and consumption.
| Status of LPG in India | Status of LNG in India |
| 1. Expansion of clean cooking access: LPG has emerged as the primary cooking fuel in India. Under PM Ujjwala Yojana, LPG coverage increased from 62% in 2016 to nearly 100% of households. For e.g., India’s LPG consumption nearly doubled between 2012 and 2023, indicating a major shift away from traditional fuels. 2. Domestic production and distribution: Oil marketing companies such as Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL) produce about 40% of India’s LPG requirement domestically. Expansion of bottling plants and LPG distributors has improved last-mile connectivity. 3. High import dependence: Nearly 60% of India’s LPG demand is met through imports. Most LPG shipments pass through the Strait of Hormuz, exposing India to geopolitical disruptions. | 1. Natural gas in India’s energy mix: Natural gas accounts for around 6% of India’s energy basket, lower than the global average. India aims to increase this share to 15% by 2030. 2. Supply structure: About 50% of natural gas demand is met through domestic production, while the remaining 50% is imported as LNG. Qatar supplies nearly half of India’s LNG imports. 3. LNG infrastructure expansion: LNG is imported through regasification terminals at major ports and transported through pipelines. For e.g., Projects like the Urja Ganga pipeline aim to expand the national gas grid and promote gas-based industries. |
Challenges in LPG and LNG supply chain:
1. Geopolitical risks: Conflicts in West Asia can disrupt energy supplies and increase price volatility.
2. Limited storage infrastructure: India has limited LNG storage capacity, relying largely on immediate consumption after regasification.
3. Inadequate pipeline infrastructure: Regional imbalances exist, with pipeline networks concentrated in western India.
4. Market Constraints: LNG prices in Asia are highly volatile, as reflected in the JKM (Japan -Korea Marker) index.
Way Forward:
1. Diversification of import sources: Reduce dependence on West Asian suppliers by expanding LNG and LPG imports from the US, Australia, Russia and Africa.
2. Expansion of reserves: Develop underground gas storage facilities and larger LPG/LNG storage terminals to manage supply shocks.
3. Strengthening Infrastructure: Accelerate projects such as the Urja Ganga pipeline and expand the national gas grid to underserved regions.
4. Boost Alternative fuels: Encourage exploration of domestic gas reserves and coal-bed methane while promoting biogas and green hydrogen as complementary energy sources.
Conclusion:
LPG and LNG play a critical role in India’s clean energy transition and energy security strategy. While initiatives such as PMUY and expansion of gas infrastructure have improved access and consumption, reducing import dependence, strengthening storage capacity, and expanding pipeline networks will be essential to build a resilient and sustainable gas-based economy.
‘+1’ Value Addition:
- PM Ujjwala Yojana: Over 9.6 crore LPG connections provided to poor households.
- Natural Gas Advantage: Electricity from natural gas emits about 54% less CO₂ than coal.
- Qatar–India Energy Link: LNG imports constitute nearly 60% of India–Qatar bilateral trade value.
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