World LPG Forum 2010 World LPG Forum 2010 World LPG Forum 2010-Madrid --Madrid Madrid

1. Indian LPG Market ProspectsIndian LPG Market Prospects
ApurvaApurva ChandraChandra
Joint SecretaryJoint Secretary--MarketingMarketing
MOP&NGMOP&NG
Government of IndiaGovernment of India
World LPG Forum 2010-MadridWorld LPG Forum 2010World LPG Forum 2010--MadridMadrid

2. Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects
– Potential in Rural India-Domestic Sector
– Industrial Sector
– Transport Sector
• Stimulating Demand Through
– Vision 2015 of MOP&NG
– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward

3. Indian LPG ScenarioIndian LPG Scenario
Fourth largest consumer of LPG
in the world after USA, China &
Japan
Third largest consumer in
domestic sector in the world
after China & USA
Major market of LPG is
Domestic Sector
Home Delivery of 3 Million LP
Gas cylinders per day(i.e 900
Million/ year)
Steady Growth @ 8% p.a. in LPG
Consumption in India
LPG Demand (TMT) & Growth
Top 5 Consumers-Domestic (2008)

4. Indian LPG ScenarioIndian LPG Scenario
Gap between demand & supply
(indigenous production)
• Demand in 2009‐10 stands at
12746 TMT
• Indigenous Production in 09‐10
was 10323 TMT
• Imports @22% of total LPG
Demand
• Indigenous LPG production
through State Run, Private And
Fractionators
Demand Vs Supply (TMT)
Indigenous Production

5. Indian LPG ScenarioIndian LPG Scenario
High Growth Expected in Commercial/Industrial & Transport Sector
Consumption Pattern:
Domestic Commercial Industrial
Transport-Auto LPG Domestic growth is 8‐9% but overall pie has
reduced over the years
Commercial & Industrial Consumption is
increasing .
World Consumption in Industrial Sector is almost
11% & in Transport is 9%

6. Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects
– Potential in Rural India-Domestic Sector
– Industrial Sector
– Transport Sector
• Stimulating Demand Through
– Vision 2015 of MOP&NG
– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward

7. LPG Market ProspectsLPG Market Prospects
Potential Market: Domestic Segment in Rural Areas
Urban Rural Total
Population in Million 326.2 838.8 1165
Households in Million 95 159 254
LPG Connections in Million 83.8 31.2 115.0
Penetration of LPG 88% 19.6% 45%
LPG Penetration in Domestic Sector:

8. LPG Market ProspectsLPG Market Prospects
Potential in Rural India:
• 72% of Indian Population lives in
Rural areas
• 87% of villages have population
less than 2000
Encouraging Facts about Rural Market:
• Increase in Purchasing Power
• Improving Literacy Levels
• Imparting Functional Literacy to
females
• Awareness about clean fuel
LPG can make significant contribution in protecting Environment & Human Health
Distribution of Villages in India
Population
Number of
Villages
% of Total
< 200 114267 18%
200 ‐ 499 155123 24%
500‐ 999 159400 25%
1000‐ 1999 125758 20%
2000‐ 5000 69135 11%
5000‐ 9999 11618 2%
>10000 3064 0%
Total 638365 100%
Target Market

9. LPG Market ProspectsLPG Market Prospects
Industrial Sector:
• Commercial & Industrial
Segment growing at 27% CAGR
for last 5 years
• Achieving Growth through:
– Conversions from conventional fuels
to LPG
– Creating Awareness about LPG as
cleaner fuel
– Capital Investments in Industries for
LPG Installations
Commercial & Industrial LPG Sales

10. LPG Market ProspectsLPG Market Prospects
Transport Sector:
• Auto LPG sales increasing by 30% CAGR between 2005‐06 and 2009‐10
• With 0.5 Million vehicles running on Auto Gas, India has per vehicle consumption
of 451 Kg per annum against world average of 1428 kg per annum.
Source: WLPGA 2009
Transport-Auto LPG Consumption per Vehicle: Kg/annum

11. Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects
– Potential in Rural India-Domestic Sector
– Industrial Sector
– Transport Sector
• Stimulating Demand Through
– Vision 2015 of MOP&NG
– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward

12. Stimulating Demand in Domestic SectorStimulating Demand in Domestic Sector
Vision 2015 of Govt. of India
1. Increase in Domestic LPG Connections:
• Focus on areas where LPG penetration is low by giving
incentives ‐ Raise population coverage from 50% to
75%.
• Increasing LPG customer from 107 millions to 160
millions by 2015
• Switch Over from Kerosene to LPG
2. Common LPG Kitchen‐Making LPG affordable:
• Opening up community Kitchens in all villages with
population > 5000 as a part of Corporate Social
Responsibility
Projected Growth in LPG Demand shall be 8-9% year on year till 2015

13. Stimulating Demand in Domestic SectorStimulating Demand in Domestic Sector
Vision 2015 of Govt. of India
3. Rajiv Gandhi Gramin LPG Vitaran
(Low Cost Rural Distribution Model):
• Shall improve reach of LPG
• A low cost model of distribution
sustainable for cluster of villages
having about 4500 families
• Expected Refill Sales: 600 cylinders
of 14.2 kg per month
LPG Sales Volume in Domestic Sector shall reach 16MMT by 2015

14. Stimulating Demand ThroughStimulating Demand Through
Government of India Policies
Focus on Rural Areas to increase purchasing power of rural folks
• Direct subsidy to farmers
• Extension of Debt waiver
• Allocation under NREGA increased (NREGA‐National Rural
Employment Guarantee Act)
Automotive Sector: Efficient and Cleaner Road Transport
• Euro IV Standards
• CNG for all public transport
• Auto LPG: Encouraging consumers to switch from conventional
fuels to clean alternatives such as LPG
Industrial Sector
• Sectoral Initiatives taken by Govt. of India and OMCs for
Conversion to LPG from liquid Fuels
• Stricter pollution control norms propagating use of efficient fuels

15. Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects
– Potential in Rural India
– Transport Sector
– Industrial Sector
• Stimulating Demand Through
– Vision 2015 of MOP&NG
– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward

16. LPG Demand Outlook LPG Demand Outlook
2011-12 2012-13 2013-14 2014-15
LPG Demand 14920 16140 17418 18680
Projected growth 8% 8.1% 7.9% 7.3%
Indigenous production
Refineries 5963 6903 7033 7513
Fractionators 2112 2112 2112 2112
RIL 2500 2000 2000 2000
Essar 800 800 2000 2000
Total Prodn. 11375 11815 13145 13625
Import Required 3545 4325 4273 5055
All Figures in TMT

17. Overview of PresentationOverview of Presentation
• Indian LPG Scenario
• LPG Market Prospects
– Potential in Rural India
– Industrial Sector
– Transport Sector
• Stimulating Demand Through
– Vision 2015 of MOP&NG
– Government Policies and Schemes
• LPG Demand Outlook
• Way Forward

18. Infrastructure PlanInfrastructure Plan
S.No Infrastructure Capacity in TMT
Project
Investment
2009-10 2014-15 USD Million
1 Import Handling Terminals 4700 6500 220
2 Pipelines Capacity 532
3 Tankage (Storage Capacity) 685 912 700
4 Bottling Capacity 12097 18037 450

19. Focus on InfrastructureFocus on Infrastructure
Mumbai
Vizag
Panipat
Guwahati
Haldia
Vijayawada
Kochi
Barauni
Kanpur
Kandla
Jalandhar
Delhi
Chennai
Mumbai
High
Mangalore
Secunderabad
Ajmer
Paradip
Jamnagar
Loni
Hazira
Trichy
Gurgaon
Bangalore
Chakan
Existing Pipelines
Proposed Pipelines
Ennore
JNPT
Durgapur
NEW IMPORT TERMINALS
LOCATION Capacity Cost USD
Ennore 600 TMTPA 90 M
JNPT 600 TMTPA 70 M
Kochi 600 TMTPA 60 m
Existing Refinery
Bhatinda
Bina
Proposed Refinery
PROPOSED PIPELINES
Proposed Pipelines Length Cost
USD
Paradip – Haldia – Budge
Budge – Kalyani – Durgapur
673 km 202 M
Ennore – Chenglepet –
Pondy – Trichy
382 km 115 M
Mangalore – Bangalore 376 km 110 M
Mumbai ‐ Uran – Chakan 166 km 105 M

20. New InitiativesNew Initiatives
Commissioned World’s Largest Flex
Speed Carousel at one of bottling plants
of State‐owned company (HPCL)
Use of Anti Pilferage Device in LPG
Cylinders
Integration of LPG & SKO distribution
with Govt. of India’s Unique
Identification Project (UIDAI)
IVRS/SMS based Refill Booking System
for LPG Customers
EOI for Composite Cylinders
Exploring possibilities of Earning Carbon
Credits
Anti Pilferage Device
Project Aadhaar‐ UIDAI

21. Audio Visual (AV)
on Vision 2015 and Initiatives taken by OMCs

22. Thank YouThank You