RIL Decides To Reduce LPG Output

Reliance Industries has decided to reduce LPG production by around 1 million metric tonne per annum (mmtpa) from mid-2008. Of late, RIL converted its Jamnagar refinery to an export-oriented unit. India, which is surplus in refining capacity, is still importing LPG to meet domestic demand. RIL is one of the significant producers of LPG in the private sector. Together with Essar, it produces 2.6 million tonne of LPG every year, where Essar''s contribution is stated to be between 0.3-0.1 million tonne per year. Shortage of LPG is a politically sensitive issue and the government has had to initiate several steps in the past to maintain regular and routine supplies of LPG for the domestic market. The country requires about 10.7 mt of LPG per annum -10 mt for domestic consumption and about 0.76 mt for auto LPG. In 2006-07, both public and private sector refiners in India produced 8.4 mt of LPG while public sector OMCs had to import 2.3 mt to bridge the gap. The annual LPG production capacity of public sector OMCs is around 5.7 mt.