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India – A Driver for Asian LP Gas Demand Growth Alok Kumar Gupta Chief Manager – Business Development Hindustan Petroleum Corporation Limited Alok Kumar.

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Presentation on theme: "India – A Driver for Asian LP Gas Demand Growth Alok Kumar Gupta Chief Manager – Business Development Hindustan Petroleum Corporation Limited Alok Kumar."— Presentation transcript:

1 India – A Driver for Asian LP Gas Demand Growth Alok Kumar Gupta Chief Manager – Business Development Hindustan Petroleum Corporation Limited Alok Kumar Gupta Chief Manager – Business Development Hindustan Petroleum Corporation Limited

2 Overview of the Presentation LPG Market in Asia Current LPG Supply & Demand LPG Demand Drivers in India LPG Demand Outlook Replicating demand drivers Overview of the Presentation LPG Market in Asia Current LPG Supply & Demand LPG Demand Drivers in India LPG Demand Outlook Replicating demand drivers

3 LPG Market Development in Asia Asia Pacific contribution to World LPG consumption is: 40% in domestic sector 49% in industrial sector Rise in LPG demand from the domestic sector in the Middle East and Asia Bottled LPG remains the most widely used method Demand rising from the transport sector (autogas) in Asia-Pacific LPG is fast replacing wood and dung resulting in reduction of adverse climate effects Rise in Population and change in lifestyle - provides a significant opportunity for LPG India & China are amongst Top 10 Producers & Consumers of LP Gas in World

4 Overview of the Presentation LPG Market in Asia Current LPG Supply & Demand LPG Demand Drivers in India LPG Demand Outlook Replicating Demand Drivers

5 LPG Demand in Asia Asia: Moderate Demand Growth in LPG to Continue through 2015 Strong growth in LPG demand in Asia & Middle East Asia is largest LPG consuming region in the world and is still expanding Asia is largest user of LPG for residential & Industrial applications Asia has the largest growth potential in the end use sector LP Gas Consumption- Million MT

6 LPG Production in Asia Rise in LPG Production in Asia- New refining Capacity LPG Production is increasing in China & India Regional LPG supply has already increased by nearly 10 MMTPA since 2000 LPG supplies should increase by another 9 MMPTA in Asia by 2012 (average growth of 4%/year) LP Gas Production- Million MT

7 Current Scenario in India Demand & Production Sources of Bulk LPG Import Growth (TMT) Source Countries India is fourth largest consumer of LPG in the world

8 Overview of the Presentation LPG Market in Asia Current LPG Supply & Demand LPG Demand Drivers in India LPG Demand Outlook Replicating Demand Drivers

9 Demand Drivers in India Demand Drivers in India Indian Economy GDP Growth Increase in Per Capita Income Focus on Infrastructure Development Social Environment Growth in Population Increase in Literacy Women Empowerment Focus on Rural India Penetration of LPG Vision MOP&NG Govt. Policies & Public Schemes Concerns & Regulation on Climate Change Transportation sector Industrial sector

10 Indian Economy Indian Economy GDP Growth In India Per Capita Income Gross Domestic Product Maintaining Growth in spite of slowdown Per Capita Income Highest ever growth in (14.4%) Per capita income in : US$780 Infrastructure Highways: Allocation for NHDP raised 23% Focus on housing & basic amenities to urban poor Driving Demand for cleaner fuel i.e. L P Gas

11 Demand Drivers in India Demand Drivers in India Indian Economy GDP Growth Increase in Per Capita Income Focus on Infrastructure Development Social Environment Growth in Population Increase in Literacy Women Empowerment Focus on Rural India Penetration of LPG Vision MOP&NG Govt. Policies & Public Schemes Concerns & Regulation on Climate Change Transportation sector Industrial sector

12 Social Environment Literacy Rate In India Population Second most populous country with 1.6% annual growth 70% people live in rural areas Literacy Rate Female literacy rate during the period increased by 14.87% (54.2%) against 11.72% (75%) in male literacy Imparting functional literacy to females through National Literacy Mission: Gender Equity and Women Empowerment Heightened Social Awareness Increased School Enrolment Household Savings and access to credit Health and Hygiene Driving Demand: Awareness in females on Clean & Convenient fuel

13 Demand Drivers in India Demand Drivers in India Indian Economy GDP Growth Increase in Per Capita Income Focus on Infrastructure Development Social Environment Growth in Population Increase in Literacy Women Empowerment Focus on Rural India Penetration of LPG Vision MOP&NG Govt. Policies & Public Schemes Concerns & Regulation on Climate Change Transportation sector Industrial sector

14 Penetration of LPG UrbanRuralTotal Population March 2009 in Million Households in Million LPG connections as of in Million Penetration85%17%42% Per capita consumption (Kg/year) Huge Potential in rural areas- needs to be tapped

15 Vision 2015 & Govt. Policies 1.New LPG Connections: Increasing LPG customer population from 107 millions to 160 millions by 2015 Raise population coverage from 57% to 75% 2.Common LPG Kitchen: Opening up in all villages with population > 5000 as a part of Corporate Social Responsibility (Rasoi Ghar)Rasoi Ghar Govt. Policies & Schemes Measures-Focus on Rural Areas Direct subsidy to farmers Extension of Debt waiver Allocation under NREGA increased by 144% (NREGA- National Rural Employment Guarantee Act) Additional 4.0 MMT LPG demand in Domestic Segment by 2015

16 Demand Drivers in India Demand Drivers in India Indian Economy GDP Growth Increase in Per Capita Income Focus on Infrastructure Development Social Environment Growth in Population Increase in Literacy Women Empowerment Focus on Rural India Penetration of LPG Vision MOP&NG Govt. Policies & Public Schemes Concerns & Regulation on Climate Change Transportation sector Industrial sector

17 Regulation on Climate Change Transportation Sector Efficient and Cleaner Road Transport Euro IV Standards CNG for all public transport Auto LPG Industrial Sector Sectoral Initiatives taken by Govt. of India to achieve Kyoto Protocol objectives Reduction of gas-flaring, installation of waste heat recovery systems, energy audits, etc. Energy conservation in industrial sector has been promoted in steel, cement, paper, caustic soda, brick & aluminum sector. Stricter pollution control norms propagating use of efficient fuels Additional Demand of 1 MMT in industrial sector by 2015

18 Overview of the Presentation LPG Market in Asia Current LPG Supply & Demand LPG Demand Drivers in India LPG Demand Outlook Replicating Demand Drivers

19 LPG Demand Outlook-India LPG Demand Projections XI plan – CAGR 4% ( ) XII plan – CAGR 5.8% ( ) Asia Pacific Databook I – CAGR 6% LPG Supply Outlook – Supply equals projected demand Grassroot refineries at Paradip, Bina & Bhatinda – 1740 TMTPA LPG Demand-Industry Expected Demand by 2015: 15.9 MMT Industry Demand at 2015 Domestic : 13.5 MMT Industrial : 2.3 MMT Industry Demand at 2010 Domestic : 11.1 MMT Industrial : 1.1 MMT

20 Overview of the Presentation LPG Market in Asia Current LPG Supply & Demand LPG Demand Drivers in India LPG Demand Outlook Replicating Demand Drivers

21 Asia- Replicating Demand Drivers Demand drivers can be replicated in countries where: Human Development Index is more or less similar GDP per unit of energy is comparable to India %age of urban population is comparable Per Household LP Gas consumption in domestic sector is low Demand Drivers Infrastructure Development Women Empower- ment Increase in Literacy Focus on Rural Areas Regulation on climate changes

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23 Rasoi Ghar- An Unique Initiative A pioneer initiative by HPCL for promoting use of LPG in rural India Provides low cost cooking for users with Nil initial investment Cook and Pay Reduce Deforestation Concept based on community kitchen Increases awareness of LPG as convenient fuel More than 1450 Rasoi Ghars across India Approx families getting benefited Results in villagers taking individual LPG connections


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