India directs refiners to maximise LPG production
Change
India invoked the Essential Commodities Act and ordered all domestic oil refineries to prioritise and use their propane and butane streams for household LPG production, directing that the output be supplied exclusively to the three public sector oil marketing companies.
Why it matters
The order bars refiners from diverting propane and butane streams into petrochemical or other downstream manufacturing and requires that LPG outputs be allocated first to household cooking supply rather than to vehicular or commercial users. Refiners must alter processing runs and fractionation yields to raise LPG production, constraining the availability of those hydrocarbon streams for other refinery derivatives.
Implications
- • Refinery operations managers must reconfigure crude processing and fractionation runs to increase propane and butane yields for LPG production.
- • Refinery commercial and sales teams must stop supplying propane or butane to petrochemical buyers and redirect contracted volumes to the three public sector oil marketing companies for household distribution.
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