NEW DELHI, India — The government has set specified 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). The move is aimed at strengthening domestic cooking-gas supplies and improving the country’s ability to respond to potential supply disruptions.
Key Highlights
- Production levels have been specified for 24 refinery and upstream oil companies.
- The combined LPG production potential has been set at 63.81 KTPD.
- Reliance Industries has the highest specified potential at 18 KTPD.
- The government can direct companies to increase LPG output when higher domestic availability is considered necessary.
Government sets LPG production framework
The Ministry of Petroleum and Natural Gas issued the order on August 13, covering 18 public-sector refineries, three private-sector companies and three upstream companies.
The order modifies the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, by introducing specific operational directions related to LPG production and supply.
Reliance Industries has highest specified LPG potential
Reliance Industries has the highest specified LPG production potential among the companies listed, at 18 KTPD. BPCL’s Kochi refinery follows with 4.80 KTPD, while Nayara Energy has a specified potential of 4.48 KTPD.
Combined, these three companies account for 27.28 KTPD of the total specified production potential of 63.81 KTPD.
Companies asked to strengthen LPG infrastructure
The new framework requires public-sector, joint-venture and private-sector refineries, along with upstream oil companies, to maintain adequate infrastructure for storing, evacuating and transporting LPG in line with their specified production quantities.
The companies must also take technically and economically viable steps to maximise LPG output beyond their existing minimum producible levels.
Technology upgrades could support higher LPG output
The government order identifies technological measures that companies can consider to increase LPG production. These include naphtha-to-LPG conversion and upgrades that convert gasoline-based fluid catalytic cracking units into petro-fluid catalytic cracking units.
The framework is intended to provide additional production capacity when required, while allowing companies to adopt measures considered technically and economically viable.
Government can order higher LPG production
A key provision gives the government the authority to direct refiners, oil marketing companies and upstream producers to increase LPG production for a specified quantity and period if higher domestic availability is considered necessary in the public interest.
Such directions may also restrict alternative uses of input streams required for LPG production. Companies receiving such directions will have to raise output within the specified timeframe.
LPG production schedule to be revised twice a year
The government will revise the production schedule twice annually, on January 1 and July 1. The updates will account for new refineries and upstream companies as well as additional output resulting from changes in infrastructure, technology, evacuation, transportation and distribution.
The Centre for High Technology or another authorised agency will monitor implementation of the framework. Violations of directions issued under the order will be punishable under the Essential Commodities Act, 1955.
Why the LPG production order matters
The new mechanism gives the government a structured framework for managing domestic LPG production and responding to periods when additional supplies are considered necessary.
By setting production levels and requiring supporting infrastructure, the framework could strengthen domestic cooking-gas availability and reduce vulnerability to external supply disruptions.
Frequently Asked Questions
What is the total LPG production potential specified by the government?
The combined specified LPG production potential of the 24 refinery and upstream companies is 63.81 KTPD, or 63,810 metric tonnes per day.
Which company has the highest specified LPG production potential?
Reliance Industries has the highest specified LPG production potential among the companies mentioned in the order, at 18 KTPD.
What happens next?
The specified production schedule will be updated every six months, while the authorised monitoring agency will oversee implementation. Companies may also be directed to increase LPG output when the government considers additional domestic availability necessary in the public interest.
