India Sets LPG Production Targets for Refineries Amid Import Dependence Concerns
The Indian government has issued an order to set maximum cooking gas LPG production targets for individual public- and private-sector refineries and upstream companies. The move is aimed at building a domestic supply buffer after the West Asia conflict exposed India's vulnerability to disruptions in imported cooking gas.
The Petroleum and Natural Gas Ministry has specified maximum LPG production levels for 21 refineries, with combined production potential set at 63,810 tonnes a day - more than double the domestic LPG output in the fiscal year ended March 31. The lion's share of the planned output will come from Reliance Industries Ltd's older refinery, which would have to produce up to 18,000 tonnes a day of LPG.
The government has empowered itself to order refiners and upstream companies to ramp up LPG production for specified quantities and periods whenever necessary. The production schedule will be reviewed every six months to add output from new refineries and account for additional capacity created through technology and infrastructure upgrades.