-
LPG demand to decline 7% by 2030 on growing piped natural gas adoption
India’s liquefied petroleum gas (LPG) demand will decline by 7% by 2030 after having risen 82% in a decade as a planned massive adoption of piped natural gas will eat into its growth, according to a joint study by the Petroleum and Natural Gas Regulatory Board (PNGRB) and Deloitte.
Household consumption makes up about 90% of the total LPG consumption in the country. About 99% of households have access to clean fuel—domestic LPG connections have doubled in a decade to 320 million — but many poor families consume an abysmally low amount of fuel. Their consumption is expected to expand in the future and can fuel demand for LPG.
However, this growth will likely be more than offset by a rapid expansion of piped natural gas (PNG). “As city gas distribution sector grows, it will be the key factor that will erode LPG demand,” the study said. “Demand erosion will be prominent in the domestic segment as PNG—domestic and commercial—is cheaper than LPG.”
Share This
