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Monday, October 29, 2007

India gears up LPG import infrastructure

NEW DELHI, Oct. 29 (UPI) -- India is gearing up its liquefied petroleum gas import infrastructure to tackle addition volume in the coming months.

The Petroleum and Natural Gas Ministry says the country’s LPG gas import infrastructure is being cranked up to handle additional volumes in a few months, when Reliance Industries Ltd. is expected to cut LPG production.

RIL accounted for more than a quarter of the country’s LPG production of around 8.5 million tons per annum in 2006. Around 2.5 mtpa LPG was imported last year to meet the domestic demand of 11 mtpa. India is not self-sufficient in this petroleum product, a ministry official said.

RIL says it is planning to cut LPG production at Jamnagar from 2.3 mtpa to around 1.6 mtpa from mid-2008 following the grant of export-oriented unit status to the refinery.

According to the ministry’s data, LPG imports are already on the rise. The data says that between April and July, the country imported 0.7 million tons LPG, 49 percent more than the 0.47 million tons a year ago.

“The cut in production will further increase imports. We are gearing up by augmenting our import facilities at Kandla,” said a senior ministry official.

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