India directs refiners to maximise LPG production
Change
India invoked the Essential Commodities Act to require oil refiners to use all available propane and butane streams for LPG production for delivery to the three public sector oil marketing companies and prohibited their diversion to petrochemical or other downstream uses.
Why it matters
Refiners will need to reconfigure refining operations to boost propane–butane yields, reducing flexibility to produce other refinery outputs and petrochemical feedstocks. Channeling those streams into household cylinder supply will tighten availability for vehicle, commercial and industrial LPG users, forcing immediate procurement adjustments.
Implications
- • Oil refining companies operating in India must stop diverting propane and butane into petrochemical processes and instead route those streams into LPG production for transfer to public sector oil marketing companies.
- • Public sector oil marketing companies' LPG distribution units must prioritise produced LPG for domestic household cylinder supply and adjust distribution allocations accordingly.
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Source
Topics
Policy & Regulation Regulatory Actions Supply Chain & Logistics Oil & Gas