Why in News?
- Closure of Strait of Hormuz (2026) disrupted India’s energy imports, severely affecting LPG (household fuel) and LNG (industrial fuel) supplies.
- Government pushing PNG transition policy to manage shortages and prioritise rural energy security.
Relevance
- GS III (Economy)
- Energy security, import dependence
- GS III (Environment)
- Clean energy transition
- GS II (IR)
- Geopolitics of energy (Hormuz)
Practice Question
Q1.“India’s energy security remains vulnerable to geopolitical chokepoints.”Discuss with reference to LPG and LNG supply disruptions. (250 words)
Overview
- LPG (Liquefied Petroleum Gas) is propane–butane mix, derived from crude refining; LNG (Liquefied Natural Gas) is methane-rich natural gas liquefied at -160°C.
- India is 3rd largest LPG consumer (31.3 million tonnes) and 6th largest producer (12.7 million tonnes) globally.
- LPG has 60% import dependency, with ~90% imports via Hormuz, causing ~54% supply disruption after closure.
- LNG has ~50% import dependency, but only ~30% effective supply hit, due to diversified sourcing and domestic production.
- LPG is primary cooking fuel for ~33 crore households, while PNG (natural gas) covers only ~1.5 crore households.
- LNG supports fertiliser plants, power generation, petrochemicals, making it critical for industrial economy.
- LPG storage limited (~25 days), increasing vulnerability; LNG requires cryogenic infrastructure and regasification terminals.
Core Differences
- LPG liquefies under moderate pressure, easy to store in cylinders; LNG requires cryogenic cooling (-160°C), making storage energy-intensive.
- LPG volume reduces to 1/260th, LNG to 1/600th, making LNG more efficient for long-distance transport.
- LPG distributed via cylinders (road-based logistics); LNG transported via cryogenic ships and pipelines (PNG/CNG).
- LPG is heavier than air (higher explosion risk); LNG (natural gas) is lighter than air (disperses quickly, safer).
Impact of Hormuz Crisis
- LPG crisis affects household energy security, with price rise (~₹60 per cylinder) due to Brent crude surge ($120–130/barrel).
- LNG disruption impacts fertiliser production, power supply, and industrial output, potentially affecting inflation and growth.
- LPG disruption more severe due to higher dependency + limited substitutes in rural areas.
- LNG relatively resilient due to pipeline networks and partial domestic production (35.6 BCM).
Policy Response: LPG → PNG Transition
- Government mandated switch to PNG in pipeline-connected urban areas, discontinuing LPG supply if not adopted.
- Objective: Reallocate LPG to rural/remote regions, where pipeline infrastructure is absent.
- Priority allocation:
- 100% supply to PNG households and CNG transport
- ~80% supply to industries/commercial users
- Reflects shift toward urban gas-based economy and efficient resource allocation.
Significance
- Highlights India’s energy security vulnerability to geopolitical chokepoints (Hormuz).
- Reinforces need for fuel diversification and infrastructure expansion (pipelines, storage).
- Demonstrates transition from portable fuels (LPG) → network-based fuels (PNG/LNG) in urban areas.
- Aligns with clean energy goals, as natural gas is a transition fuel (lower emissions than coal/oil).
Challenges / Criticisms
- Infrastructure constraints: PNG requires extensive pipeline networks; rural areas remain excluded.
- Equity concerns: Forced transition may burden urban consumers with installation costs.
- Import dependence persists: Both LPG and LNG heavily reliant on West Asia.
- Storage limitations: Inadequate strategic reserves for LPG and LNG increase vulnerability.
- Policy rigidity: Mandating PNG may face resistance due to consumer preference and logistical issues.
Way Forward
- Diversify import sources beyond Gulf (e.g., US, Russia, Africa) to reduce chokepoint dependency.
- Expand strategic LPG and LNG storage capacity to cushion short-term shocks.
- Accelerate National Gas Grid expansion for wider PNG/CNG coverage.
- Promote renewable alternatives (biogas, green hydrogen, solar cooking) to reduce fossil fuel dependence.
- Strengthen energy diplomacy and long-term contracts for supply stability.
- Encourage demand-side efficiency and behavioural change to reduce consumption pressure.
Prelims Pointers
- LPG = propane + butane; LNG = methane.
- LNG liquefaction at -160°C; LPG under moderate pressure.
- LPG heavier than air; LNG lighter than air.
- Strait of Hormuz = critical global energy chokepoint.
- India: 60% LPG import dependence; ~50% LNG import dependence.
