India is accelerating the move to piped gas for household use as liquefied petroleum gas (LPG) supplies are severely disrupted due to the war in the Middle East.
Around 60% of Indian households rely on LPG for their primary cooking fuel, and the blockage at the Strait of Hormuz, from where 90% of all Indian LPG imports pass, has been immediately felt by consumers.
Amid the supply crisis, which has had the Indian government cut LPG supplies to commercial establishments and industries to have more cooking gas available for household use, authorities are pushing for an expansion of the city pipeline gas networks to replace LPG cylinders and use where possible.
In recent days, some LPG carriers have transited the Strait of Hormuz en route to India, as Iran is selectively allowing oil and gas shipments to China, India, Pakistan, and several other Asian nations.
But the crisis and the near-closed Strait of Hormuz acted as a wake-up call for the Indian government to accelerate the switch to piped gas from LPG.
India has recently launched a program urging households with piped gas connections to give up their LPG cylinders to help those without a link to pipeline gas.
Last week, the Indian government also issued an order to expand and lay pipelines across the country. The order is addressing delays in approvals and access to land, and enabling faster development of natural gas infrastructure, including in residential areas, the Ministry of Petroleum and Natural Gas said.
Pipeline network expansion would facilitate a gradual transition from LPG to pipeline gas in areas where pipeline infrastructure exists, according to the government.
The expansion of city gas distribution networks is set to strengthen and diversify the gas distribution network, reducing dependence on a single fuel, the government said.
“The Government remains committed to expanding the role of natural gas in India’s energy mix and fostering a policy environment that promotes investment, innovation, and sustainability,” it noted.
By Tsvetana Paraskova for Oilprice.com
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