LPG vs LNG & Impact of West Asia Conflict

The ongoing West Asia conflict has significantly disrupted global energy supplies, particularly affecting India’s imports of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG). Both LPG and LNG are hydrocarbon gases converted into liquid form for storage and transport, but they differ in composition, storage methods, and usage.

Key Differences Between LPG and LNG

LPG: Mainly propane and butane; used for cooking (domestic cylinders).

LNG: Primarily methane; used in power generation and industries.

LNG requires cryogenic storage at very low temperatures, while LPG is easier to store and transport.

Impact of Conflict on India

The conflict has disrupted shipping routes, especially through the Strait of Hormuz, a critical global energy chokepoint.

Around 60% of India’s LPG demand is met through imports

Nearly 90% of LPG imports pass via the Strait of Hormuz

This has disrupted nearly 54% of LPG supplies, forcing the government to prioritise household consumption over industrial use

Government Response

To manage the crisis:

Supply to commercial and industrial sectors has been reduced

Priority is given to domestic cooking needs

India is exploring alternative energy sources and supply routes

Additional Facts

Strait of Hormuz: Handles about 20% of global oil trade (major chokepoint)

Energy Security: Refers to uninterrupted availability of energy at affordable prices

India maintains Strategic Petroleum Reserves (SPR) as a buffer against such shocks

LPG is a key component of schemes like Pradhan Mantri Ujjwala Yojana (PMUY)

LNG is increasingly used as a cleaner transition fuel compared to coal