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India sets 63,810-ton daily LPG output target in Aug 13 order

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India sets 63,810-ton daily LPG output target in Aug 13 order

India orders state-run and private refineries to produce up to 63,810 metric tons of cooking gas daily under an August 13 government order. The targets aim to secure domestic LPG supplies and build buffers after the U.S.-Israeli war against Iran disrupted imports through the Strait of Hormuz.

Key Facts

  • India's August 13 government order sets a maximum daily cooking gas production target of 63,810 metric tons for state-run and private refineries.
  • Reliance Industries' domestic-market-focused refinery is tasked with producing 18,000 tons of LPG per day.
  • India sourced about 90% of its cooking gas imports from the Middle East before disruptions began in March due to the blockade of the Strait of Hormuz.
  • Oil and Natural Gas Corp, Oil India and Gail India are expected to contribute 10% of the nationwide target.

Production Mandate

India's August 13 order sets a maximum daily cooking gas production target of 63,810 metric tons for state-run and private refineries. Reliance Industries' domestic-market-focused refinery is tasked with producing 18,000 tons per day of LPG. State-run Oil and Natural Gas Corp, Oil India and Gail India are expected to contribute 10 percent of the nationwide target. The order aims to secure domestic supplies and build buffers after the U.S.-Israeli war against Iran disrupted LPG imports.

Import Disruption and Logistics

India was buying about 90 percent of its cooking gas imports from the Middle East before the war on Iran disrupted supplies. Supplies were disrupted from March due to the blockade of the Strait of Hormuz. Companies are required to maintain adequate infrastructure for storing and transporting LPG directly or through railways and road tankers. The federal government will update the targets every January and July to reflect new production and additional output from existing refineries.

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India sets 63,810-ton daily LPG output target in Aug 13 order