Reliance Boosts LPG Output Amid Global Energy Volatility, Backs India's Security

In a statement, Reliance Industries said that it will continue to work closely with the Government and remain fully compliant with all national guidelines and allocation priorities.

The West Asia crisis has implications for India's energy security, and the government has taken several steps to ramp up the supply of domestic cooking gas.

"At a time when global energy markets are experiencing volatility, ensuring uninterrupted access to essential fuels for Indian households remains a national priority. Reliance Industries is taking proactive steps and in line with the Government guidelines, to maximize LPG production from our refining and petrochemicals complexes at Jamnagar -- the world's largest integrated refining hub," Reliance Industries Limited (RIL) statement said.

The statement said that its teams are working around the clock to optimize refinery operations and enhance LPG output.

"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," it said.

"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," it added.

Reliance Industries said it remains committed to doing everything possible to support India's energy security in times of global uncertainty.

"For Reliance, India's energy security and the well-being of millions of Indian families always come first. We will continue to work closely with the Government of India and remain fully compliant with all national guidelines and allocation priorities, ensuring that energy supplies reach the sectors and communities that need them the most," the statement said.

"As always, Reliance will stand firmly with the nation in its time of need. 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," it added.

The government has invoked the Essential Commodities Act to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent. of their average past six-month average gas consumption.

These sectors include: Domestic Piped Natural Gas supply; Compressed Natural Gas for transport; LPG production including LPG shrinkage requirements; Pipeline compressor fuel and other essential pipeline operational requirements.

The order further states that supply of natural gas to the fertilizer plants shall ensure seventy per cent. of their past six-month average gas consumption, subject to operational availability. It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six-month average gas consumption subject to operational availability.

All City Gas Distribution entities have been asked to ensure that industrial and commercial consumers supplied through their networks receive eighty per cent. of their past six-month average gas consumption subject to operational availability.

The oil refining companies have been ordered to absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty-five per cent. of the past six-month gas consumption, subject to operational feasibility.

Every producer, importer, transporter, marketer or distributor of natural gas including LNG and regasified LNG has been asked to furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government or to any officer authorised by it.

Meanwhile, the Ministry of Petroleum and Natural Gas issued orders to oil refineries to increase Liquefied Petroleum Gas (LPG) production and directed that such additional output be channelled specifically for domestic use.

The government prioritised domestic LPG supply to households to ensure energy security for citizens amidst the ongoing uncertainty in the global oil and energy market due to West Asia crisis

"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the Ministry of Petroleum and Natural Gas said in a post on X.

To manage the current supply environment, the ministry introduced a 25-day inter-booking period for consumers to avoid hoarding and prevent black marketing.

- ANI