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[BUSINESS] · India · 24 sources

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India sets LPG production targets for refineries to boost energy security

The Indian government has introduced a permanent framework to set refinery-specific and company-specific liquefied petroleum gas (LPG) production targets. This measure aims to bolster domestic energy security and mitigate the impact of supply disruptions caused by geopolitical tensions in West Asia, particularly regarding the Strait of Hormuz.

Under the new directive from the Petroleum and Natural Gas Ministry, 21 refineries and upstream companies are required to ramp up production during supply shortages. The combined potential production capacity under this framework is set at 63,810 tonnes per day, which covers approximately 70 percent of India's daily LPG consumption. This is a significant increase from the country's normal domestic output.

Reliance Industries Ltd. has been assigned the largest individual target, with a maximum production level of 18,000 tonnes per day. The initiative follows a recent crisis where disruptions in the Strait of Hormuz exposed India's heavy reliance on imports, which account for more than 64 percent of its annual LPG requirements. During previous peak shortages, domestic production had been temporarily increased to approximately 55,000 tonnes per day.

Entities

Gail India Ltd. · Government of India · India · Oil India Ltd. · Oil and Natural Gas Corp. · Petroleum and Natural Gas Ministry · Reliance Industries Ltd · Reliance Industries Ltd. · Strait of Hormuz

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