India’s state-run refiners are set to fully commission the world’s longest liquefied petroleum gas (LPG) pipeline by June, a major infrastructure milestone aimed at reducing transportation costs and preventing road accidents.

“This will be a game changer in the LPG supply chain,” said N. Senthil Kumar, director of pipelines at Indian Oil Corp. “It’s like putting LPG on a conveyor belt.”

The $1.3 billion project is expected to replace hundreds of trucks that currently transport LPG across the country, reducing accident risks. Recent incidents, including a tanker overturning in Coimbatore and a fatal collision in Jaipur that killed 20 people, have highlighted the dangers of road-based fuel transport.

Indian Oil, Bharat Petroleum Corp., and Hindustan Petroleum Corp. have jointly formed IHB Ltd. to develop the 2,800-kilometer pipeline from Kandla on the west coast to Gorakhpur in northern India. The first phase will be commissioned in March, with full operations beginning by mid-year, according to Kumar, who also chairs the joint venture.

The pipeline will have an annual capacity of 8.3 million tons, supplying around 25% of India’s total LPG demand. Currently, about 70% of bottling plants rely on trucks for supply. The Petroleum and Natural Gas Regulatory Board has been urging refiners to expand pipeline infrastructure to manage growing volumes and enhance safety.

Domestic LPG consumption, primarily for cooking, has surged 80% over the past decade to nearly 30 million tons in the fiscal year ending March 2024. This growth has been fueled by government subsidies encouraging low-income households to switch from polluting biomass to cleaner fuel.

Initially announced in 2019, the project faced multiple delays due to the pandemic and supply chain disruptions caused by Russia’s war in Ukraine. India’s existing LPG pipeline network currently spans nearly 5,000 kilometers, and this expansion marks a significant step toward strengthening the country’s energy infrastructure.