India expected to be at the forefront in oil and gas pipeline network additions in Asia

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GlobalData, citing Bloomberg, has reported that India's state-run refiners are nearing the completion of the world's longest liquefied petroleum gas (LPG) pipeline, which is expected to start operations by June and enhance supply chain efficiency. The project, valued at US$1.3 billion, is set to replace numerous trucks currently traversing the country, thereby reducing fuel transportation costs and the potential for accidents.

Indian Oil, Hindustan Petroleum (HPCL), and Bharat Petroleum (BPCL) have jointly established IHB Limited to create the 2,800 km pipeline, which will extend from Kandla in western India to Gorakhpur in the north. Indian Oil director of pipelines and IHB chairman N. Senthil Kumar is reported to have said: "This will be a game changer in the LPG supply chain. It is like putting LPG on a conveyor belt."

The network is designed to transport approximately 8.3 million tons of LPG annually, covering around 25% of India's total demand.

Currently around 70% of bottling plants receive their supply via road transport. The Petroleum and Natural Gas Regulatory Board has been advocating for more pipelines to manage increasing volumes and prevent major road incidents.

LPG usage in India, primarily for household cooking, has increased by four-fifths over the past decade, reaching 29.6 million t in the fiscal year ending in March 2024. This growth has outstripped the 47% rise in demand for other refined oil products. The sales boost has been supported by government subsidies aimed at encouraging low-income households to shift away from using polluting biomass for cooking.

The Indian government is focused on expanding the natural gas infrastructure to increase its share in the country's primary energy mix, with plans to develop a "One Nation One Gas Grid."

As of 2024, the country has around 43,000 km of pipelines to transport crude oil and petroleum products.