Oil marketing companies to release 55 mn new LPG connections

Indian Oil-Petronas is exploring logistic solutions for its clients in western & northern India

Oil marketing companies (OMCs) are in the process of releasing 55 million new LPG connections to achieve domestic LPG penetration of 75 per cent pan-India by 2015.

Speaking at the launch of the new LPG import-export terminal at Ennore, near here, M Nene, chairman IPPL and director (Marketing), Indian Oil Corporation Ltd IndianOil-Petronas Pvt Ltd (IPPL), said the government was committed to achieve domestic LPG penetration of 75 per cent pan-India by 2015 from a level of less than 50 per cent in 2009.

The three OMCs together roll out 3.2 million cylinder every day from over 180 upcountry LPG bottling plants. These cylinders are then delivered at the doorstep of customers by a countrywide network of over 12,000 LPG distributors.

The government's policy initiative in capping subsidised LPG cylinders for households with effect from September 2012 has led to a major churning in LPG marketing. It has not only brought down illegal diversion of the product but has also led to a significant upswing in autosales, according to him.

Nene said IPPL was exploring business opportunities for providing logistically competitive terminal services on the west coast in western and northern India. This would enable the industry to achieve stability in LPG supplies in the long-term.

While IOC on its own is planning set up a 600-TMTPA import facility in Kochi by 2015 and a 1,500-TMTPA import facility at Paradip, the support of IPPL is also crucial for Indian Oil Corporation, which accounts for nearly half of the LPG market in the country with 73.4 million customers. Besides production of LPG from its 10 refineries, IOC owns and operates a 600,000-tonne per annum LPG import facility at Kandla on the west coast.