India’s state-run refiners will fully commission the world’s longest LPG pipeline by June, significantly reducing fuel transportation costs and road accidents. Indian Oil Corp.’s pipeline director, N. Senthil Kumar, called it a “game changer” for the LPG supply chain. The $1.3 billion project will replace hundreds of fuel trucks, lowering accident risks.
Recent incidents, including a tanker overturning in Coimbatore and a fatal crash in Jaipur, highlight the dangers of road transport.Indian Oil, Bharat Petroleum, and Hindustan Petroleum have formed IHB to construct a 2,800-km LPG pipeline from Kandla to Gorakhpur. The first phase will be commissioned in March, with full operation by mid-year, according to IHB Chairman N. Senthil Kumar. The pipeline will transport 8.3 million tons of LPG annually, about 25% of India’s demand, reducing transportation costs as 70% of bottling plants still rely on trucks.
The Petroleum and Natural Gas Regulatory Board is urging refiners to expand pipelines to handle growing demand and prevent road accidents.India’s LPG demand, primarily for home cooking, surged 80% over the past decade to 29.6 million tons in FY 2024, outpacing refined oil demand growth.
Government subsidies have boosted sales by encouraging low-income households to switch from biomass. The pipeline project, announced in 2019, faced delays due to COVID-19 and material shortages caused by Russia’s war in Ukraine. India’s LPG pipeline network currently spans nearly 5,000 km.
