PNG expansion, renewables, US LPG imports in focus: Centre informs Lok Sabha

THe authorities is taking several measures to trim back bharat’s dependance on imported liquified Petroleum Gas (LPG) and enhance energy security in the medium to long term, including prioritising piped natural gas (PNG) and renewable energy development such as solar, wind, bioenergy and green hydrogen, minister of state for environment Suresh Gopi informed the Lok Sabha on Thursday.He said that India imports about 60% of its LPG needs, with nearly 90% of supplies transiting through the Strait of Hormuz, making the country vulnerable to disruptions.As part of immediate measures, the government has directed refineries to channel key hydrocarbon streams exclusively toward LPG production, boosting domestic output by 40%. Simultaneously, public sector undertaking (PSU) oil marketing companies have secured contracts to import 2.2 million metric tonnes of LPG from the United States in 2026—around 10% of India’s import requirement—marking a shift away from traditional Gulf suppliers.To ease supply pressures, the Centre is also pushing PNG connections for commercial establishments and promoting cleaner energy sources, including solar, wind, bioenergy and green hydrogen, alongside ethanol blending and efficiency measures.Gopi was responding to questions by Rajya Sabha lawmaker Amar Singh on: (1) whether the government has assessed the impact of global energy supply disruptions and geopolitical tensions in West Asia on LPG imports and domestic availability in the country, and if so, the details thereof; (2) the details of initiatives undertaken by the government to manage LPG supply chains, including measures to enhance domestic production and regulate distribution among consumer categories; and (3) the initiatives proposed to strengthen the country’s LPG supply resilience and prevent similar shortages in the future.In the short term, to boost domestic production of LPG for current usage, on March 9, the Centre issued directions to all oil refining companies, including petrochemical complexes, that the entire output of C3 and C4 hydrocarbon streams—such as propane, butane, propylene and butenes—is utilised exclusively for LPG production and supplied only to public sector oil marketing companies. Further, refineries were also instructed not to divert these streams for manufacturing petrochemical products or any downstream derivatives, Gopi said.Oil marketing companies (OMCs) have been directed to ensure that the LPG produced is supplied exclusively to domestic LPG consumers. As a result of these initiatives, domestic LPG production has increased by 40%. While domestic LPG supplies have been prioritised, commercial LPG supplies were initially impacted. Subsequently, the government restored partial supplies of 20% to commercial consumers, which was further enhanced to an overall allocation of 50%, including 10% linked to PNG expansion reforms, Gopi explained.This allocation has been prioritised for key sectors such as restaurants, dhabas, hotels, industrial canteens, food processing and dairy units, subsidised canteens run by state governments or local bodies, community kitchens, and 5 kg Free Trade LPG (FTL) cylinders for migrant labourers.“India imports about 60% of its LPG consumption, out of which about 90% transits through the Strait of Hormuz. In view of the ongoing geopolitical developments in West Asia, the availability of imported LPG in the country has been impacted. The Government has undertaken a series of proactive measures to ensure stability in LPG supplies. These include prioritization of domestic LPG consumption, diversification of import sources, dynamic stock management, and inter-regional allocation to address localised shortages,” Gopi said.Further, city gas distribution (CGD) entities have also been advised by the Centre to prioritise providing piped natural gas (PNG) connections to commercial establishments such as restaurants, hotels and canteens across their authorised geographical areas, with a view to addressing concerns relating to the availability of commercial LPG.“Government has requested all Central Government Ministries/Departments to carry out a comprehensive assessment of the potential demand for PNG connections in establishments under their jurisdiction, and to designate a nodal officer in each Ministry/Department to coordinate this exercise. Pursuant to the aforesaid directions, the Petroleum and Explosives Safety Organisation (PESO) has instructed all its offices to accord priority to CGD-related applications and ensure their disposal within 10 days of receipt,” Gopi said, adding that the Centre is also promoting alternative fuels by increasing the share of natural gas in the energy mix. “In addition, emphasis is being laid on renewable energy development, including solar, wind, bioenergy and green hydrogen, alongside implementation of energy efficiency measures across sectors. Ethanol blending and other biofuels are also being promoted to reduce import dependence and enhance energy sustainability,” he said.“Strategically, diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events. As part of this strategy, PSU OMCs have recently concluded contracts for the import of approximately 2.2 million metric tonnes (MMT) of US-origin LPG for the calendar year 2026, covering nearly 10% of the country’s total LPG import requirement. This marks a significant step in strengthening India’s energy resilience by establishing a reliable alternate LPG supply source outside the traditional Arab Gulf region,” the response added.