IndianLPGMarketProspects

IndianLPGMarketProspects
Apurva
Apurva
Chandra
Chandra
Joint Secretary
Joint Secretary
-
-
Marketing
Marketing
MOP&NG
MOP&NG
Government of India
Government of India
World LPG Forum 2010-Madrid
World LPG Forum 2010
World LPG Forum 2010
-
-
Madrid
Madrid
OverviewofPresentation
OverviewofPresentation
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
IndianLPGScenario
IndianLPGScenario
Fourth largest consumer of LPG
in the world after USA, China &
Japan
Third largest consumer in
domestic sector in the world
afterChina&USA
Major market of LPG is
DomesticSector
Home Delivery of 3 Million LP
Gas cylinders per day(i.e 900
Million/year)
SteadyGrowth@8%p.a.inLPG
ConsumptioninIndia
LPG Demand (TMT) & Growth
Top 5 Consumers-Domestic (2008)
IndianLPGScenario
IndianLPGScenario
Gap between demand & supply
(indigenousproduction)
Demandin200910standsat
12746TMT
IndigenousProductionin0910
was10323TMT
Imports@22%oftotalLPG
Demand
IndigenousLPGproduction
throughStateRun,PrivateAnd
Fractionators
Demand Vs Supply (TMT)
Indigenous Production
IndianLPGScenario
IndianLPGScenario
High Growth Expected in Commercial/Industrial & Transport Sector
ConsumptionPattern:
Domestic
Commercial Industrial
Transport-Auto LPG
Domestic growth is 89% but overall pie has
reducedovertheyears
Commercial & Industrial Consumption is
increasing.
WorldConsumptioninIndustrialSectorisalmost
11%&inTransportis9%
OverviewofPresentation
OverviewofPresentation
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
LPGMarketProspects
LPGMarketProspects
Potential Market: Domestic Segment in Rural Areas
Urban Rural Total
PopulationinMillion 326.2 838.8 1165
HouseholdsinMillion 95 159 254
LPGConnectionsinMillion 83.8 31.2 115.0
PenetrationofLPG 88% 19.6% 45%
LPGPenetrationinDomesticSector:
LPGMarketProspects
LPGMarketProspects
PotentialinRuralIndia:
72% of Indian Population lives in
Ruralareas
87% of villages have population
lessthan2000
EncouragingFactsaboutRuralMarket:
IncreaseinPurchasingPower
ImprovingLiteracyLevels
Imparting Functional Literacy to
females
Awarenessaboutcleanfuel
LPG can make significant contribution in protecting Environment & Human Health
DistributionofVillagesinIndia
Population
Numberof
Villages
%ofTotal
<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
LPGMarketProspects
LPGMarketProspects
IndustrialSector:
Commercial & Industrial
Segment growing at 27% CAGR
forlast5years
AchievingGrowththrough:
Conversionsfromconventionalfuels
toLPG
Creating Awareness about LPG as
cleanerfuel
CapitalInvestmentsinIndustriesfor
LPGInstallations
Commercial & Industrial LPG Sales
LPGMarketProspects
LPGMarketProspects
TransportSector:
AutoLPGsalesincreasingby30%CAGRbetween200506and200910
With0.5MillionvehiclesrunningonAutoGas,Indiahaspervehicleconsumption
of451Kgperannumagainstworldaverageof1428kgperannum.
Source:WLPGA2009
Transport-Auto LPG
Consumption per Vehicle: Kg/annum
OverviewofPresentation
OverviewofPresentation
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
StimulatingDemandinDomesticSector
StimulatingDemandinDomesticSector
Vision2015ofGovt.ofIndia
1. IncreaseinDomesticLPGConnections:
FocusonareaswhereLPGpenetrationislowbygiving
incentives Raisepopulationcoveragefrom50%to
75%.
IncreasingLPGcustomerfrom107millionsto160
millionsby2015
SwitchOverfromKerosenetoLPG
2. CommonLPGKitchenMakingLPGaffordable:
OpeningupcommunityKitchensinallvillageswith
population>5000asapartofCorporateSocial
Responsibility
Projected Growth in LPG Demand shall be 8-9% year on year till 2015
StimulatingDemandinDomesticSector
StimulatingDemandinDomesticSector
Vision2015ofGovt.ofIndia
3.Rajiv GandhiGramin LPGVitaran
(LowCostRuralDistributionModel):
ShallimprovereachofLPG
Alowcostmodelofdistribution
sustainableforclusterofvillages
havingabout4500families
ExpectedRefillSales:600cylinders
of14.2kgpermonth
LPG Sales Volume in Domestic Sector shall reach 16MMT by 2015
StimulatingDemandThrough
StimulatingDemandThrough
GovernmentofIndiaPolicies
FocusonRuralAreastoincreasepurchasingpowerofruralfolks
Directsubsidytofarmers
ExtensionofDebtwaiver
Allocation under NREGA increased (NREGANational Rural
EmploymentGuaranteeAct)
AutomotiveSector:EfficientandCleanerRoadTransport
EuroIVStandards
CNGforallpublictransport
Auto LPG: Encouraging consumers to switch from conventional
fuelstocleanalternativessuchasLPG
IndustrialSector
Sectoral Initiatives taken by Govt. of India and OMCs for
ConversiontoLPGfromliquidFuels
Stricterpollutioncontrolnormspropagatinguseofefficientfuels
OverviewofPresentation
OverviewofPresentation
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
LPGDemandOutlook
LPGDemandOutlook
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
RI L 2500 2000 2000 2000
Essar 800 800 2000 2000
Total Prodn. 11375 11815 13145 13625
Import Required 3545 4325 4273 5055
AllFiguresinTMT
OverviewofPresentation
OverviewofPresentation
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
InfrastructurePlan
InfrastructurePlan
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
FocusonInfrastructure
FocusonInfrastructure
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
ExistingPipelines
ProposedPipelines
Ennore
J NPT
Durgapur
NEWIMPORTTERMINALS
LOCATION Capacity CostUSD
Ennore 600TMTPA 90M
JNPT 600TMTPA 70M
Kochi 600TMTPA 60m
ExistingRefinery
Bhatinda
Bina
ProposedRefinery
PROPOSEDPIPELINES
ProposedPipelines Length Cost
USD
Paradip Haldia Budge
Budge Kalyani Durgapur
673km 202M
Ennore Chenglepet
Pondy Trichy
382km 115M
Mangalore Bangalore 376km 110M
Mumbai Uran Chakan 166km 105M
NewInitiatives
NewInitiatives
Commissioned Worlds Largest Flex
Speed Carousel at one of bottling plants
ofStateownedcompany(HPCL)
Use of Anti Pilferage Device in LPG
Cylinders
Integration of LPG & SKO distribution
with Govt. of Indias Unique
IdentificationProject(UIDAI)
IVRS/SMS based Refill Booking System
forLPGCustomers
EOIforCompositeCylinders
Exploring possibilities of Earning Carbon
Credits
AntiPilferageDevice
ProjectAadhaar UIDAI
AudioVisual(AV)
onVision2015andInitiativestakenbyOMCs
ThankYou
ThankYou