India’s LPG crisis is the wake-up call it cannot ignore, Pg6

Key Highlights:

• India faces a significant LPG crisis in 2026 due to shortages and high import dependence.
• Crude oil import dependence has reached 88.6%, with LNG imports projected at 28-29 MMT this year.
• Domestic gas production meets only half of India's requirements, while energy demand is expected to triple by 2047.
• Compressed Biogas (CBG) offers a solution, with a potential of 62 MMT annually, but current output is only 920 tonnes per day.
• Government initiatives like SATAT and GOBAR-DHAN aim to promote bioenergy but face execution challenges.

Detailed Insights:

• India's growing energy gap exposes it to global price shocks and geopolitical disruptions, fueling inflation and straining public finances.
• Existing LNG infrastructure is underutilized due to pipeline constraints and demand mismatches, while LPG supply chains are heavily dependent on imports from West Asia.
• Scaling up CBG production can reduce stubble burning, improve air quality, create rural jobs, and enhance farmer incomes, fostering a circular economy.
• Establishing a national feedstock security framework, streamlining regulatory processes, and promoting dedicated energy crops like Napier grass are crucial steps.
• Viability gap funding, green bonds, and carbon credit integration can improve project economics and attract private investment in the CBG sector.

Key Concepts Involved:

• Liquefied Petroleum Gas (LPG): A flammable mixture of hydrocarbon gases used as fuel in heating appliances, cooking equipment, and vehicles.
• Liquefied Natural Gas (LNG): Natural gas that has been cooled to liquid form for ease and safety of non-pressurized storage or transport.
• Compressed Biogas (CBG): Purified and compressed biogas, similar to natural gas, produced from biomass sources like agricultural residue and animal waste.
• Feedstock: Raw material used to supply or fuel a machine or industrial process.

Biogas Production