LPG – Liquified Petroleum Gas is gaining recognition in the Indian markets as a sustainable solution. It is ideal for India’s growing needs and the increasing environmental concerns. At Anil Engineering, we support the use of LPG and help our clients make the switch to LPG with our expertise in end-to-end installation and operations.

LPG is a mixture of butane and propane and is less polluting due to its low sulphur content. Also, it has a high calorific value and offers energy efficiency in multiple applications. The incredible qualities of LPG make it perfect for a consistent and exceptional source of energy that’s both, innovative and sustainable.

Growing LPG Domestic Penetration

India brought the world’s most significant LPG connection drive back in 2016 with the PMUY program, which was a catalyst to employ a cleaner fuel for cooking. By January 2021, the LPG penetration reached 99.5% and the number is a positive sign for the use of LPG in India. Moving forward, all households will continue to use LPG for their cooking requirements. The Indian government plans to provide 10 million additional connections in the PMUY program and achieve 100% LPG coverage in the next two years.

Infrastructural Development Leading to LPG Adoption

As India’s GDP grows, the number of LPG connections and the disposable income of Indians will also grow. This will result in an increase in the LPG refill rates, especially from the beneficiaries under the PMUY program. As a result, India will need more imports of LPG and bottling capacity as well. The government’s push towards a natural gas-based economy will also increase the usage of LPG in the energy sector. Major energy, gas and oil conglomerates like BPCL, IOCL and others are increasing their total capacity of LPG terminals and boosting the imports as well.

Investors are also seeing the opportunity for LPG to play a larger role in industrial developments. It produces 33% fewer carbon emissions compared to coal and 15-20% fewer emissions compared to oil.

The Indian LPG Market in the Future

India has now become the second largest importer of LPG across the world and the imports have shown remarkable trends over the last 10 years. The reason for the high imports includes sustained growth in the consumption of LPG, new demand centres and drivers for demand in the development of India. The rapid increase in urban population and LPG penetration in rural areas led to the growth of LPG by 10%. India consumes around 19 million tonnes of LPG per year, making us the second largest consumer of this gas in the world. LPG consumption is expected to witness a double-digit growth even in the coming years.

Although 90% of LPG’s demand comes from the residential sector, Auto LPG sales are also on the rise. The constant rise in the prices of petrol and diesel have made LPG a preferred fuel for many vehicle owners and business owners, too.

It’s important to remember that LPG is a non-renewable source of energy and hence, it shouldn’t be misused. Domestic and commercial connections for LPG are increasing by the day and at Anil Engineering, we have all the equipment to make LPG usage safe and secure for the long term.

Contact us to get started on your LPG solution!

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