OMCs gear up to meet LPG bottling demand

New LPG-related infrastructure additions are likely to happen in FY18 and FY19

Amritha Pillay  |  Mumbai 

The surge in demand for household liquefied petroleum gas (LPG) following the Pradhan Mantri Ujjwala Yojana (PMUY) has forced oil marketing companies (OMCs) to sweat their existing LPG infrastructure in the last fiscal year. New LPG-related infrastructure additions are likely to happen in FY18 and FY19. Until then, OMCs will have to depend on increased number of shifts and technology upgrades. For FY17, the packed domestic LPG consumption rose 10 per cent to 17.18 million tonnes per annum (mtpa) from 18.87 mtpa. In the same period, the bottling capacity of OMCs increased 7 ...

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OMCs gear up to meet LPG bottling demand

New LPG-related infrastructure additions are likely to happen in FY18 and FY19

The Pradhan Mantri Ujjwala Yojana (PMUJ) and its resultantsurge in demand for household liquefied petroleum gas (LPG) has forced oilmarketing companies (OMCs) to sweat its existing LPG infrastructure in the lastfiscal. New LPG related infrastructure additions are likely to happen in thecurrent and in the next financial year, until then OMCs depend on increasednumber of shifts and technology upgrades.For the financial year 2016-2017, packed domestic LPGconsumption rose 10% to 17.18 million tonnes from 18.87 million tonnes. In thesame period, OMC's bottling capacity increased 7% to 16.26 million tonnes from15.17 million tonnes per annum, leaving a gap between the consumption andcapacity available. In its bid to plug this gap, OMCs have been looking atshifts and technology upgrades, until new capacities are commissioned. "IOC has added a capacity of 570 thousand meteric tonne per annum( TMTPA) at 9 Bottling plantsin the last financial year by augmentation of the Bottling infrastructure .. The surge in demand for household liquefied petroleum gas (LPG) following the Pradhan Mantri Ujjwala Yojana (PMUY) has forced oil marketing companies (OMCs) to sweat their existing LPG infrastructure in the last fiscal year. New LPG-related infrastructure additions are likely to happen in FY18 and FY19. Until then, OMCs will have to depend on increased number of shifts and technology upgrades. For FY17, the packed domestic LPG consumption rose 10 per cent to 17.18 million tonnes per annum (mtpa) from 18.87 mtpa. In the same period, the bottling capacity of OMCs increased 7 ... image
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