LPG is refinery within gas or oil for cooling the pressurized liquified colorless volatile liquid. It is effortless to ignite spontaneously, and when its content in the air reaches a specific concentration range. It can explode when it encounters an open flame. The main components of the liquefied petroleum gas obtained through the refinery are one or two of propane, propylene, butane, and butene, and it is doped with a small amount of pentane, pentene, and trace sulfide impurities. To further purify liquefied petroleum gas, alcohol amines may be used in which the absorption column COS absorption removal, and finally with alkali wash away excess sulfide.
India’s liquefied petroleum gas market likely to grow with a significant rate over the forecast periods, 2020-2027. The growing government initiatives to encourage LPG applications on account of its extended benefits as cooking fuel. Additionally, the increasing use of LPG fuel in cooking equipment, heating appliances, and a refrigerant and aerosol propellant is projected to fuel the demand for India’s liquefied petroleum gas. Further, the increasing use of LPG as a transportation fuel and the swelling use of LPG as a feedstock in petrochemical refineries are some other major drivers propelling the growth of the liquefied petroleum gas market size across India. Also, the surge in the population in India is expected to fuel up the demand for LPG as the people us LPG as cooking fuel.
The total production capacity of LPG deep processing continues to expand, driving the increase in demand for raw material gas. Moreover, the government’s initiatives to encourage the commercialization of LPG as Cooking and auto fuel is positively impacting the market. Further, the rapid depletion of fossil fuel coupled with ongoing measures to reduce carbon footprint is expected to propel the demand for liquefied petroleum gas over the coming years. Additionally, the Indian government is encouraging the use of LPG by offering subsidies on cylinders, and using autogas as a major alternative transportation fuel is anticipated to boost India’s liquefied petroleum gas market industry in the future periods.
Indian government provides 5 crores free LPG connections to low-income families through Pradhan Mantri Ujjawal Yojna. This central government’s Ujjwala scheme can help low-income families make cooking gas their primary cooking fuel and not burn firewood and cow dung. By distributing 73 million connections as of 2019, as the Ujjwala scheme has met 91.25% of its target of 80 million connections to poor households by 2020. Strengthening the Ujjwala scheme is essential to reduce the health burden of India, such as dung, burning firewood, and agricultural residue for cooking and other household uses.
LPG is a product with a very high degree of marketization, and the price fluctuates very frequently. Due to the wide range of uses of liquefied gas, there are more influencing factors such as international oil prices, domestic and international production, and supply conditions. The crude oil prices plummeted in March, and global liquefied gas prices fell simultaneously, so domestic liquefied gas also started a sharp decline mode.
Based on the source, India liquefied petroleum gas market is classified into the refinery, associated gas, and non-associated gas. The refinery segment dominated the largest share in the India liquefied petroleum gas market in 2019. The growth of the segment can be attributed to the increasing demand for crude oil that is transformed in a typical refinery to produce LPG across India.
The associated gas will witness steady growth in the coming years due to the growing demand for the number of gases under the LPG products label, including propane, butane, isobutane, and mixtures of these gases.
Based on the application, India liquefied petroleum gas market segregated into residential, commercial, chemical, industrial, automotive fuel, refinery, and others. The residential is expected to hold the largest market share from 2020 to 2027. It is due to favorable government initiatives and subsidies to promote the use of LPG in residential as the major alternative fuel to conventional counterparts, including coal and wood fuel.
The automotive fuel will grow at a momentous rate in the forecast period. It s is due to the growing alternate fuel demand across the transportation sector to minimize environmental concerns such as pollution levels and carbon emission levels.
Based on geography, India liquefied petroleum gas market segmented into North India, South India, West India, and East India. North India estimated to account for the largest size of the India liquefied petroleum gas market throughout the forecast period. It is owing to the population expansion, abundant resource availability, and high energy requirements along with easy affordability as the presence of government subsidies on cylinders.
South India captured a prominent share of the liquefied petroleum gas market due to the rise in demand for cooking gas and increase the production volumes of the cooking gas.
Companies such as Reliance Industries Ltd. (RIL), ONGC, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Chennai Petroleum Corp. Ltd, GAIL India Ltd, Hindustan Petroleum Corporation Limited, and Oil India Limited are the key players in India’s liquefied petroleum gas market.