India's Reliance to maximize LPG production at Jamnagar refinery

India's Reliance Industries Ltd. said March 10 that it aims to maximize LPG production at its refining and petrochemical complex in Jamnagar to ensure ample supplies of the fuel in the domestic market.

The move by Reliance comes a day after the Indian government directed oil refiners to boost LPG output and ensure supplies to households and key essential sectors, as the ongoing war in the Middle East has made adjustments to refinery production necessary.

"At a time when global energy markets are experiencing volatility, ensuring uninterrupted access to essential fuels for Indian households remains a national priority," Reliance said in a statement.

"Reliance Industries is taking proactive steps, in line with the government guidelines, to maximize LPG production from our refining and petrochemicals complexes at Jamnagar. Our teams are working around the clock to optimize refinery operations and enhance LPG output so that supplies to the domestic market remain stable and reliable," the company added.

At the same time, natural gas produced from the KG-D6 Basin will be diverted to support supply to priority sectors, in line with national energy priorities and government guidelines, Reliance said.

"In times of global uncertainty, we remain committed to doing everything possible to support India's energy security and ensure reliable access to essential fuels for the country," the company said, adding that Reliance is working to ensure energy supplies reach the sectors and communities that need them most.

India consumed 31.3 million metric tons of LPG in fiscal year 2024-25 (April-March), according to oil ministry data, up 5.5% from FY 2023-24. Domestic LPG production meets only about 41% of the country's demand, with the remaining volumes imported, petroleum ministry officials said.

The oil ministry has prioritized domestic LPG supply to households and introduced a 25-day booking period to prevent hoarding and black marketing amid current disruptions and supply constraints, officials added earlier this week.

Non-domestic supplies from imported LPG are being prioritized for essential non-domestic sectors such as hospitals and educational institutions.

State-run refiners

State-run Indian Oil Corp. said in a statement March 10 that, in light of current geopolitical disruptions affecting global fuel supply, steps are being taken to enhance LPG production and prioritize its availability for domestic consumers and essential non-domestic sectors such as hospitals and educational institutions.

"Requests from other non-domestic sectors will be reviewed by a committee of executive directors from oil marketing companies and prioritized based on merit, necessity and product availability," IOC said.

A senior petroleum ministry official told Platts, part of S&P Global Energy, that there was no LPG supply crisis in the domestic market, as the government had implemented anti-hoarding measures to ensure supplies. The domestic cooking gas situation is monitored in real time.

"We are committed to ensuring an uninterrupted supply of affordable energy to our domestic consumers. There is no shortage for domestic consumers and no reason to panic," Petroleum Minister Hardeep Singh Puri said March 10.

India imported 2.144 million mt of LPG in February -- comprising 1.093 million mt of propane and 1.051 million mt of butane. This was down 4.67% month over month but up 15.83% year over year, S&P Global Commodities at Sea data showed.

India received 186,000 mt of LPG from the US in February, down 35.19% month over month. In January, US deliveries rose 122.48% month over month. India imported 33,000 mt of LPG from Russia in February, with no imports recorded in January, CAS data showed.

The country sourced 1.958 million mt of LPG from the Middle East in February -- including the UAE, Qatar, Kuwait, Saudi Arabia, Oman, Iraq and Bahrain -- accounting for 91.32% of its total imports for the month, according to CAS data.