India sets targets for oil companies to boost cooking gas output amid Middle East war
RoydadNaft – India has set a maximum daily cooking gas production target of 63,810 metric tons for state-run and private refineries to ensure domestic supplies and build buffers after U.S.-Israeli war against Iran disrupted supplies of the essential fuel, according to an August 13 government order.
Here are more details from the order:
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Companies are required to maintain adequate infrastructure for storing and transporting liquefied petroleum gas (LPG), either directly or through railways and road tankers, to meet specified quantities.
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The federal government will update the targets every January and July to reflect new production and additional output from existing refineries.
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India was buying about 90% of its cooking gas imports from the Middle East before the war on Iran disrupted supplies from March due to the blockade of the Strait of Hormuz.
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India has set production targets for individual refiners with Reliance Industries Ltd’s domestic-market-focused refinery tasked to produce 18,000 tons a day of LPG.
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State-run explorers Oil and Natural Gas Corp and Oil India Ltd, and gas utility Gail India Ltd are expected to contribute 10% of the nationwide target.
