Industry News

L&T Hydrocarbon Bags an Onshore EPC Contract from IOCL Worth INR1100 Crores

Increasing investments in expansion of petrochemical plants will surge the production of LPG market in India.

India: L&T Hydrocarbon Engineering has won an onshore EPC project worth INR1100 Crores from IOCL for setting up a 0.74 MMTPA Fluidised Cracking Unit (FCC) which includes LPG treatment facility at Bongaigaon Refinery, Assam. The project includes basic engineering, detailed engineering, procurement, supply, transportation, storage, fabrication, inspection, construction, installation, testing, mechanical completion, pre-commissioning and commissioning of the unit.

TechSci Research depicts that rising demand from transport segment and increasing consumption of LPG to produce various chemical components such as propylene, ethylene, butadiene, etc., is anticipated to boost demand of LPG in the country in coming years. Furthermore, increasing prices of naphtha, rising LPG imports and expanding distribution network are anticipated to fuel consumption of LPG in India during FY17-FY26.

According to released report of TechSci Research, “India LPG Market By End Use Segment (Residential, Commercial, Industrial, etc.), By Source (Crude Oil Distillation, NGL & LNG Fractionation, etc.), Competition Forecast and Opportunities, FY2012 - FY2026” , LPG consumption in India is forecast to surpass 35 MMT by FY26. In order to increase availability of LPG in the country and foster competition, private sector was allowed to market LPG from April 1993, by decentralizing imports of such petroleum products.  This is anticipated to boost adoption of LPG in various end user segments across the country.

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