GS 3: EconomyPrelims

Lacking long-term storage, India must rely on imports to manage LPG supply, Pg13

India grapples with LPG supply shortfall despite 25% production surge, necessitating reliance on imports due to storage limitations.

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Key Highlights:

  • India's domestic LPG production has increased by 25% due to recent government measures.
  • This increase meets only 10% of daily LPG consumption, leaving a 50% shortfall.
  • In 2024-25, India produced 13 million tonnes of LPG against a consumption of 31 million tonnes.
  • India relies on imports to meet its LPG needs due to a lack of long-term storage facilities.

Detailed Insights:

  • India's LPG production is split roughly 60-40 between imports and exports.
  • LPG is primarily sourced from crude oil distillation and Fluid Catalytic Cracking Units (FCCU) in refineries.
  • FCCUs crack heavier crude oil fractions into lighter ones, producing LPG, but also propylene for plastics.
  • Increasing LPG production in FCCUs can affect the production of polypropylene and the quality of petrol.
  • The government has mandated that refining companies should not divert propane-butane for petrochemical production.

Scientific/Technical Concepts Involved:

  • Liquefied Petroleum Gas (LPG): A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.
  • Fluid Catalytic Cracking Unit (FCCU): A refinery unit that uses a catalyst to break down heavy hydrocarbons into lighter, more valuable products.
  • Propylene: A colorless gas used as a building block in the production of plastics and other petrochemicals.
Cracking Process

Cracking Process

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