Last-mile hurdle for PNG needs to be fixed, says IOC chief

The core infrastructure for piped natural gas is largely in place. However, last-mile connectivity still needs to improve, said Arvinder Singh Sahney, Chairman of Indian Oil Corporation Limited (IOCL).

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Addressing a press conference in Chennai on Friday, he said that re-gasification terminals were running at only 30 to 40 per cent capacity, and pipeline networks covered a significant part of the state.

Expansion into households and smaller users would pick up with demand. “The push towards PNG and CNG continues, as they are cleaner and, in many regions, cheaper than LPG. Its availability is much more diversified, from various geographies,” Sahney added.

To a query on the rising concerns around the ongoing global conflict, he said that the country had expanded its sourcing base, increasing crude procurement from 25 to 41 geographies and widening LPG imports globally.

 “Supplies are being maintained through continuous inflows, even after over 40 days into the disruption. You should not worry,” Sahney said while cautioning against panic buying or hoarding.

“New domestic connections and additional cylinder requests have been restricted for now and may be reviewed as the situation evolves. Enforcement has also been stepped up. The state government has carried out over 10,000 inspections, while oil marketing companies have conducted more than 1500 checks. Action is being taken against errant distributors,” he said.

Delays in LPG cylinder supply stretching up to 20 to 25 days in parts of Chennai would  be cleared within the next 48 hours,  Sahney said.

 He added that the immediate priority was to normalise distribution.

To a question, Sahney placed Tamil Nadu’s demand at around 5 lakh cylinders per day.

Supplies were already at that level and in some cases higher. The backlog was limited to certain pockets and being cleared on priority, he added.

Sahney indicated that the supply allocation across sectors was being worked out with the state government, depending on the needs.

He also announced the increase of the commercial LPG quota for Tamil Nadu to 70 per cent of original levels, effective immediately. Following a detailed review of the state’s fuel status, Sahney assured the public that the supply of petrol, diesel, and aviation fuel remains “absolutely comfortable,” with refining capacities operating at near-full levels.

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