Lacking long-term storage, India must rely on imports to manage LPG supply
GS3Economy · S&T · Environment · Security· Infrastructure (energy, ports, roads, railways)· Prelims + Mains·
Why in news
The Indian government reported a 25% increase in domestic LPG production, yet a 50% supply shortfall persists due to inadequate long-term storage infrastructure.
Background
Domestic LPG production currently meets only 10% of daily consumption. Production is primarily driven by refinery operations using Fluid Catalytic Cracking Units (FCCUs), which simultaneously produce LPG and propylene.
Facts for Prelims
- FactDomestic LPG production contributes 10% of India's daily consumption.
- FactIndia faces a 50% shortfall in LPG supply necessitating increased imports.
- S&TFluid Catalytic Cracking Units (FCCUs) are used in refineries to produce LPG and propylene.
- FactDomestic LPG production saw a 25% increase as reported by the government.
For Mains
Q. Analyze the structural bottlenecks in India's LPG supply chain and suggest measures to reduce import dependency through infrastructure development.
Dimensions to cover in your answer
- Infrastructure gap: Insufficient strategic long-term storage capacity limiting domestic supply stability
- Production trade-offs: FCCU output impacts on polypropylene and petrol quality vs LPG availability
- Import dependency: Vulnerability to global price fluctuations due to 50% supply shortfall
Keywords: Strategic reserves · Energy security · Infrastructure deficit · Import substitution · Fluid Catalytic Cracking
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