India is set to complete the world’s longest LPG pipeline, spanning 2,800 kilometers from Kandla to Gorakhpur, by June 2025. The $1.3 billion project will reduce transportation costs, enhance safety, and replace road tankers. Expected to transport 8.3 million tons annually, it will significantly strengthen India’s LPG supply chain. Developed by IHB Limited, this initiative addresses rising fuel demand and safety concerns, marking a major milestone in India’s energy infrastructure.
India is on track to achieve a major milestone in its energy infrastructure with the upcoming completion of the world’s longest liquefied petroleum gas (LPG) pipeline. This state-of-the-art pipeline, spanning 2,800 kilometers from Kandla on the west coast to Gorakhpur in the north, is set to be fully operational by June 2025, according to a report by The Economic Times. The $1.3 billion project is poised to transform the LPG supply chain by reducing transportation costs and significantly enhancing safety standards.
Describing this ambitious initiative, N Senthil Kumar, director of pipelines at Indian Oil Corporation (IOC), called it a "game changer in the LPG supply chain," comparing the pipeline to a conveyor belt for transporting LPG. By replacing road tankers, which currently dominate LPG logistics, the pipeline aims to minimize risks associated with road accidents and ensure a safer, more efficient delivery system.
This modernization effort comes against the backdrop of recent incidents highlighting the dangers of road-based LPG transportation. For instance, an overturned tanker in Coimbatore last month caused severe traffic disruptions, while a tragic collision in Jaipur in December led to a massive explosion, claiming 20 lives, injuring 45, and damaging numerous vehicles.
The pipeline is being developed through a joint venture, IHB Limited, formed by Indian Oil, Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL). The first phase is expected to commence in March 2025, with full-scale operations by mid-2025. Once operational, the pipeline will have the capacity to transport 8.3 million tons of LPG annually, accounting for approximately 25% of India’s total LPG consumption. With 70% of bottling plants currently dependent on road transport, this project offers a cost-effective and safer alternative.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has been actively encouraging the expansion of India’s pipeline network to meet the growing demand for LPG and mitigate the hazards of road transportation. As the world’s third-largest consumer of LPG, India has seen significant growth in demand, particularly for household cooking. In the fiscal year ending March 2024, domestic LPG consumption reached 29.6 million tons, an 80% increase over the last decade. This surge far outpaces the 47% rise in overall refined oil product consumption during the same period.
India’s existing LPG pipeline network spans nearly 5,000 kilometers, and the Kandla-Gorakhpur corridor will be a significant addition, further strengthening the nation’s fuel distribution infrastructure. As this project progresses, it promises to play a pivotal role in ensuring sustainable and secure energy access for millions of households across the country.
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