The initiative is expected to significantly reduce transportation costs while addressing safety concerns associated with road tankers. The current reliance on road transport for LPG delivery has led to multiple accidents, highlighting the risks involved. Recent incidents, such as an overturned LPG tanker in Coimbatore and a massive explosion in Jaipur caused by a truck collision with a chemical-laden tanker, have underscored the dangers of road-based fuel transportation.

Developed through a joint venture, IHB, involving Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL), the pipeline will operate in two phases. The first phase is expected to commence operations in March 2025, with full-scale implementation by mid-2025. Once operational, it will transport 8.3 million tonne of LPG annually, catering to approximately 25 per cent of India's total LPG consumption.

Currently, 70 per cent of India's LPG bottling plants rely on road transport. The pipeline will serve as a cost-effective and safer alternative, mitigating logistical risks and reducing road congestion. The Petroleum and Natural Gas Regulatory Board (PNGRB) has been advocating for an expanded pipeline network to support growing demand and enhance safety measures.

India, the world's third-largest LPG consumer, has seen a sharp rise in demand, particularly for household cooking. In the fiscal year ending March 2024, domestic LPG consumption reached 29.6 million tonne, marking an 80 per cent increase over the past decade. This growth has surpassed the 47 per cent rise in overall refined oil product consumption during the same period.

With nearly 5,000 kilometers of existing LPG pipelines, the new Kandla-Gorakhpur corridor will play a crucial role in strengthening India's fuel distribution infrastructure.

News source: Swarajya