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Indian LPG Market ProspectsIndian LPG Market Prospects
ApurvaApurva ChandraChandraJoint SecretaryJoint Secretary--MarketingMarketing
MOP&NGMOP&NGGovernment of IndiaGovernment of India
World LPG Forum 2010-MadridWorld LPG Forum 2010World LPG Forum 2010--MadridMadrid
Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects– Potential in Rural India-Domestic Sector– Industrial Sector – Transport Sector
• Stimulating Demand Through– Vision 2015 of MOP&NG– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward
Indian LPG ScenarioIndian LPG Scenario
Fourth largest consumer of LPG in the world after USA, China & Japan
Third largest consumer in domestic sector in the world after China & USAMajor market of LPG is Domestic Sector
Home Delivery of 3 Million LP Gas cylinders per day(i.e 900 Million/ year)
Steady Growth @ 8% p.a. in LPG Consumption in India
LPG Demand (TMT) & Growth
Top 5 Consumers-Domestic (2008)
Indian LPG ScenarioIndian LPG Scenario
Gap between demand & supply (indigenous production)
• Demand in 2009‐10 stands at 12746 TMT
• Indigenous Production in 09‐10 was 10323 TMT
• Imports @22% of total LPG Demand
• Indigenous LPG productionthrough State Run, Private And Fractionators
Demand Vs Supply (TMT)
Indigenous Production
Indian LPG ScenarioIndian LPG Scenario
High Growth Expected in Commercial/Industrial & Transport Sector
Consumption Pattern:Domestic Commercial Industrial
Transport-Auto LPG Domestic growth is 8‐9% but overall pie has reduced over the years
Commercial & Industrial Consumption is increasing .
World Consumption in Industrial Sector is almost 11% & in Transport is 9%
Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects– Potential in Rural India-Domestic Sector– Industrial Sector– Transport Sector
• Stimulating Demand Through– Vision 2015 of MOP&NG– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward
LPG Market ProspectsLPG Market Prospects
Potential Market: Domestic Segment in Rural Areas
Urban Rural Total
Population in Million 326.2 838.8 1165
Households in Million 95 159 254
LPG Connections in Million 83.8 31.2 115.0
Penetration of LPG 88% 19.6% 45%
LPG Penetration in Domestic Sector:
LPG Market ProspectsLPG Market Prospects
Potential in Rural India:• 72% of Indian Population lives in
Rural areas• 87% of villages have population
less than 2000
Encouraging Facts about Rural Market:
• Increase in Purchasing Power• Improving Literacy Levels• Imparting Functional Literacy to
females• Awareness about clean fuel
LPG can make significant contribution in protecting Environment & Human Health
Distribution of Villages in India
PopulationNumber of Villages
% of Total
< 200 114267 18%
200 ‐ 499 155123 24%
500‐ 999 159400 25%
1000‐ 1999 125758 20%
2000‐ 5000 69135 11%
5000‐ 9999 11618 2%
>10000 3064 0%
Total 638365 100%
Target Market
LPG Market ProspectsLPG Market Prospects
Industrial Sector:
• Commercial & Industrial Segment growing at 27% CAGR for last 5 years
• Achieving Growth through:
– Conversions from conventional fuels to LPG
– Creating Awareness about LPG as cleaner fuel
– Capital Investments in Industries for LPG Installations
Commercial & Industrial LPG Sales
LPG Market ProspectsLPG Market Prospects
Transport Sector:
• Auto LPG sales increasing by 30% CAGR between 2005‐06 and 2009‐10 • With 0.5 Million vehicles running on Auto Gas, India has per vehicle consumption of 451 Kg per annum against world average of 1428 kg per annum.
Source: WLPGA 2009
Transport-Auto LPG Consumption per Vehicle: Kg/annum
Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects– Potential in Rural India-Domestic Sector– Industrial Sector– Transport Sector
• Stimulating Demand Through– Vision 2015 of MOP&NG– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward
Stimulating Demand in Domestic SectorStimulating Demand in Domestic Sector
Vision 2015 of Govt. of India
1. Increase in Domestic LPG Connections:• Focus on areas where LPG penetration is low by giving incentives ‐ Raise population coverage from 50% to 75%.
• Increasing LPG customer from 107 millions to 160 millions by 2015
• Switch Over from Kerosene to LPG
2. Common LPG Kitchen‐Making LPG affordable:• Opening up community Kitchens in all villages with population > 5000 as a part of Corporate Social Responsibility
Projected Growth in LPG Demand shall be 8-9% year on year till 2015
Stimulating Demand in Domestic SectorStimulating Demand in Domestic Sector
Vision 2015 of Govt. of India
3. Rajiv Gandhi Gramin LPG Vitaran
(Low Cost Rural Distribution Model):
• Shall improve reach of LPG
• A low cost model of distribution
sustainable for cluster of villages
having about 4500 families
• Expected Refill Sales: 600 cylinders of 14.2 kg per month
LPG Sales Volume in Domestic Sector shall reach 16MMT by 2015
Stimulating Demand ThroughStimulating Demand Through
Government of India Policies
Focus on Rural Areas to increase purchasing power of rural folks• Direct subsidy to farmers• Extension of Debt waiver • Allocation under NREGA increased (NREGA‐National Rural Employment Guarantee Act)
Automotive Sector: Efficient and Cleaner Road Transport• Euro IV Standards• CNG for all public transport• Auto LPG: Encouraging consumers to switch from conventional fuels to clean alternatives such as LPG
Industrial Sector• Sectoral Initiatives taken by Govt. of India and OMCs for Conversion to LPG from liquid Fuels
• Stricter pollution control norms propagating use of efficient fuels
Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects– Potential in Rural India– Transport Sector– Industrial Sector
• Stimulating Demand Through– Vision 2015 of MOP&NG– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward
LPG Demand Outlook LPG Demand Outlook
2011-12 2012-13 2013-14 2014-15
LPG Demand 14920 16140 17418 18680
Projected growth 8% 8.1% 7.9% 7.3%
Indigenous production
Refineries 5963 6903 7033 7513
Fractionators 2112 2112 2112 2112
RIL 2500 2000 2000 2000
Essar 800 800 2000 2000
Total Prodn. 11375 11815 13145 13625
Import Required 3545 4325 4273 5055
All Figures in TMT
Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects– Potential in Rural India– Industrial Sector– Transport Sector
• Stimulating Demand Through– Vision 2015 of MOP&NG– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward
Infrastructure PlanInfrastructure Plan
S.No Infrastructure Capacity in TMT Project Investment
2009-10 2014-15 USD Million
1 Import Handling Terminals 4700 6500 220
2 Pipelines Capacity 532
3 Tankage (Storage Capacity) 685 912 700
4 Bottling Capacity 12097 18037 450
Focus on InfrastructureFocus on Infrastructure
Mumbai
Vizag
Panipat
Guwahati
Haldia
Vijayawada
Kochi
Barauni
Kanpur
Kandla
Jalandhar
Delhi
Chennai
MumbaiHigh
Mangalore
Secunderabad
Ajmer
Paradip
Jamnagar
Loni
Hazira
Trichy
Gurgaon
Bangalore
Chakan
Existing Pipelines
Proposed Pipelines
Ennore
JNPT
Durgapur
NEW IMPORT TERMINALSLOCATION Capacity Cost USD
Ennore 600 TMTPA 90 M
JNPT 600 TMTPA 70 M
Kochi 600 TMTPA 60 m
Existing Refinery
Bhatinda
BinaProposed Refinery
PROPOSED PIPELINES
Proposed Pipelines Length Cost USD
Paradip – Haldia – Budge Budge – Kalyani – Durgapur
673 km 202 M
Ennore – Chenglepet –Pondy – Trichy
382 km 115 M
Mangalore – Bangalore 376 km 110 M
Mumbai ‐ Uran – Chakan 166 km 105 M
New InitiativesNew Initiatives
Commissioned World’s Largest Flex Speed Carousel at one of bottling plants of State‐owned company (HPCL)
Use of Anti Pilferage Device in LPG Cylinders
Integration of LPG & SKO distribution with Govt. of India’s Unique Identification Project (UIDAI)
IVRS/SMS based Refill Booking System for LPG Customers
EOI for Composite Cylinders
Exploring possibilities of Earning Carbon Credits
Anti Pilferage Device
Project Aadhaar‐ UIDAI
Audio Visual (AV)
on Vision 2015 and Initiatives taken by OMCs
Thank YouThank You