The petrochemical shift that could quench LPG production thirst

IndianOil's petrochemical strategy is primarily based on utilising captive feedstocks, he said

India may have to lean more on West Asian nations for supplies of liquefied petroleum gas (LPG), a cooking fuel, in the coming years after Indian state-run refiners drew up big plans to diversify into producing more profitable petrochemicals. This shift leads to reduced LPG output, Indian refining executives said.

The mantra for state-run oil companies, from Indian Oil Corporation (IndianOil) to liquefied natural gas (LNG) importer Petronet LNG, which are looking to diversify their businesses from lower-margin fuels, has been value-added petrochemicals.

Domestic production of LPG declined by 4.5 per cent in the April-June quarter from