Rs 7,000 crore push for India’s LPG pipeline network

The projects will expand the country’s common-carrier LPG pipeline network by almost a quarter as India seeks to make fuel supplies more resilient and reduce dependence on road transport.

PNGRB has approved the three projects across Telangana, Maharashtra, Uttar Pradesh, Uttarakhand, Karnataka and Goa, the regulator said in a statement.

The projects will be developed by state-run GAIL (India) Ltd and will take the PNGRB-authorised common-carrier LPG pipeline network from about 7,700 km to nearly 9,500 km, an increase of around 23.5 per cent.

The expansion comes as India relies heavily on imported LPG, with bulk supplies arriving at coastal import terminals before being transported to consumption centres across the country. A larger pipeline network is expected to improve the efficiency and reliability of moving LPG inland.

Three new LPG pipeline projects

The three newly authorised projects are:

• 556-km Cherlapally in Telangana to Nagpur in Maharashtra
• 611-km Jhansi in Uttar Pradesh to Sitarganj in Uttarakhand
•  633-km Shikrapur in Maharashtra to Goa and Hubli in Karnataka

The projects build on the earlier authorisation of the 2,757-km Kandla-Gorakhpur LPG pipeline, the longest LPG pipeline in the country.

Why India is expanding its LPG pipeline network

PNGRB said the new infrastructure would help accelerate a shift from road-based transportation of LPG to pipelines.

The move is expected to reduce the movement of LPG tankers and improve road safety, while cutting logistics costs, traffic congestion and carbon emissions.

Pipeline transportation is considered a safer and more economical way of moving LPG over long distances. Moving LPG from roads to pipelines also reduces the risks associated with transporting hazardous fuel by tank trucks.

The regulator has been pushing to eliminate the primary movement of LPG by road to bottling plants, particularly after a series of serious road accidents involving LPG tankers.

LPG imports and energy security

The pipeline projects also have strategic importance because India relies on imported LPG.

LPG imports arrive primarily at coastal locations, requiring large volumes to be transported inland. A nationwide pipeline grid can provide an alternative to road-based supply chains and help maintain flows during disruptions, emergencies or periods of unusually high demand.

The pipelines can also act as a form of “line-pack storage”, allowing LPG to remain within the pipeline system while product continues to move through the network.

This provides an additional buffer and can improve the flexibility of the supply system during short-term disruptions.

The latest authorisations are part of a broader effort to build a more integrated LPG transportation network, linking coastal import points with major consumption centres while reducing pressure on road logistics.

With the three projects, the common-carrier LPG pipeline network will expand by nearly 1,800 km, or about 24 per cent, giving India a significantly larger dedicated infrastructure base for moving imported and domestically sourced LPG across the country.