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New Delhi, [India] : The government has set maximum LPG production levels for 24 refinery and upstream oil companies, with a combined production potential of 63.81 thousand metric tonnes per day (KTPD), as it seeks to strengthen domestic cooking-gas supplies and improve resilience against supply disruptions.
The Ministry of Petroleum and Natural Gas, in an order dated August 13, specified production levels for 18 public-sector refineries, three private-sector companies and three upstream companies. Reliance Industries has the highest specified LPG production potential at 18 KTPD, followed by BPCL’s Kochi refinery at 4.80 KTPD and Nayara Energy at 4.48 KTPD. Together, the three account for 27.28 KTPD of the total potential.
The order amends the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, and introduces operational directions specifically for LPG production and supply. It requires public-sector, joint-venture and private-sector refineries, along with upstream oil companies, to develop and maintain adequate infrastructure for LPG storage, evacuation and transportation corresponding to the specified quantities.
The framework also requires companies to implement technically and economically viable measures to maximise LPG output beyond their existing minimum producible quantities. These include technologies such as naphtha-to-LPG conversion and upgrades to gasoline-based fluid catalytic cracking units into petro-fluid catalytic cracking units.
Importantly, the government has retained the power to direct refiners, oil marketing companies and upstream producers to ramp up LPG production for a specified quantity and period if it considers higher domestic availability necessary in the public interest. Such directions can also include restrictions on alternative uses of input streams needed for LPG production. Companies will be required to increase output within the stipulated timeframe.
The government will update the production schedule twice a year, on January 1 and July 1, factoring in new refineries and upstream companies as well as additional output arising from changes in infrastructure, technology, evacuation, transportation and distribution.
The Centre for High Technology or another authorised agency will monitor implementation, while violations of directions issued under the order will be punishable under the Essential Commodities Act, 1955.
The move gives the government a more structured mechanism to manage domestic LPG production and increase output when needed, potentially reducing vulnerability to external supply disruptions and supporting more stable availability of cooking gas. (ANI)
