Intro: While the Indian gas industry is experiencing growth and development, it faces a number of challenges that will need to be addressed in order to sustain this growth and meet the country’s energy needs in the long term. However, technology is expected to play a critical role in shaping the future of the gas industry in India, helping to drive greater efficiency, safety, and sustainability across the value chain.
Can you tell us about the current state of the Indian gas industry? What are some of the challenges that the industry is facing right now?
LPG –
The Indian LPG (liquefied petroleum gas) industry was experiencing steady growth driven by the increasing demand for LPG for cooking and heating purposes. LPG is a widely used fuel in India, particularly in rural areas where access to electricity and other sources of energy is limited. The Indian government has been promoting the use of LPG as a cleaner and more efficient alternative to traditional fuels like wood, charcoal, and kerosene.
India is the 3rd highest consumer of LPG in the world. The three Govt. PSU companies , i.e. IOCL, BPCL, HPCL dominate the LPG supply market in India. Smaller Private LPG supply companies such as SHV Supergas, Total Gas, Reliance, etc are also present. The coverage of LPG in India is also quite widespread and covers 99.4 per cent of the country. LPG is transported to customers via cylinder or tank trucks. There are more than 25,000 LPG distributors in the country. However, 90 per cent of the LPG consumed is used for household cooking purposes, only 10 per cent is used for commercial/industrial purposes. This number is very low compared to other countries in the world. Hence, the government is promoting LPG as an industrial fuel and intends to increase this to 20 per cent by 2030. Using LPG also helps to decarbonise the environment and lower the air pollution in the country.
One of the key challenges facing the Indian LPG industry is the availability and affordability of LPG. While the Indian government has been working to increase the supply of LPG to meet the growing demand, there are still areas where access to LPG is limited. In addition, the price of LPG is heavily regulated by the government, which can impact the profitability of companies in the industry. Another challenge facing the Indian LPG industry is the issue of safety. LPG is a highly flammable and explosive gas, and there have been cases of accidents and mishandling of LPG cylinders. The industry has been working to address this issue through measures such as improving safety standards and promoting the use of safety devices like regulators and pressure gauges.
The Indian LPG industry is also facing competition from other sources of energy, particularly renewable energy sources like solar and biomass. While LPG is a cleaner and more efficient source of energy than traditional fuels, it still produces greenhouse gas emissions and is not as environmentally friendly as renewable energy sources.
Overall, while the Indian LPG industry is experiencing growth and development, it faces a number of challenges that will need to be addressed in order to sustain this growth and meet the country’s energy needs in the long term.
Natural Gas –
The Indian gas industry is going through a period of rapid growth and development. The Indian government has been working to promote the use of natural gas as a cleaner and more efficient source of energy, and this has led to increased investment and expansion in the industry.
Natural Gas has to be transported via gas pipelines across the country. GAIL is responsible for laying the Natural Gas pipelines across the country. GAIL then delivers the gas to a City Gas Distribution Company such as MGL, IGL, MNGL, Adani Gas, Torrent Gas, Gujarat Gas, etc and they are responsible to lay the gas pipelines internally within the city and deliver gas to houses, hotels, industries and set up CNG pumps for vehicles. By 2028, more than 90 per cent of India’s geographical area shall have access to Natural Gas as a clean fuel. Currently gas usage in India is only at 8 per cent compared to all other fuels, while the global average is 24 per cent. This is because there was a lack of intention and action in the years from 2000 till 2014. Since 2014, several new licences to lay gas pipelines and provide natural gas to cities have been awarded by the PNGRB to several government and private entities. The government wants to make India a gas based economy and wants to increase the share from 8 per cent to 12 per cent by 2025 for gas as a fuel used across the country and then beyond that.
One of the key challenges faced by the Indian gas industry is the lack of adequate infrastructure to transport and distribute natural gas. There is a shortage of pipelines and storage facilities, particularly in rural and remote areas, which makes it difficult to reach potential customers. The government has been working to address this issue by promoting the construction of new pipelines and storage facilities, but progress has been slow. Another challenge is the pricing of natural gas. The government sets the price of natural gas, and there have been concerns about the pricing policy and its impact on the profitability of companies in the industry. Some companies have also been grappling with the issue of fluctuating global gas prices, which can impact their margins and profitability.
In addition to these challenges, the Indian gas industry is also facing increasing competition from other sources of energy, such as renewable energy sources like solar and wind power. This competition is likely to intensify as the Indian government continues to prioritise the development of renewable energy sources.
Overall, while the Indian gas industry is experiencing growth and development, it faces a number of challenges that will need to be addressed in order to sustain this growth and meet the country’s energy needs in the long term.
Pune Gas has been in operation for several years now. How has the company evolved over time, and what do you see as its unique value proposition in the Indian market?
Pune Gas was founded in 1986 as a small business to sell products, spare parts and other LPG equipment mainly for domestic use for customers in Pune. Over the years the business has grown to provide products, services and turn-key solutions for various sized industries and commercial kitchens using LPG and Natural Gas across the country.Â
Pune Gas is now the most reputed and pioneering company in India for providing the best-in-class service and most innovative products and solutions for B2B customers, industries that use LPG and Natural Gas for all their heating applications and cooking requirements. In 2021, the company signed an agreement with FAS Germany to locally manufacture cutting-edge and most efficient dry-type LPG Vaporizers in India.
Our target audience is any and every industrial and commercial customer using LPG or Natural Gas for their usage. LPG and Gas supply companies act as influencers for us, as they supply only the LPG or Gas, they do not supply the systems or products needed to efficiently use the Gas. Hence, they come to us for support to design and set up the systems needed by the client to use the LPG or Gas in the most efficient way.
Our biggest USP is our excellent reputation built over 3 decades due to the technical know-how, customer service and transparency that we bring in to delight our customers.
What are some of Pune Gas’s expansion plans for the future? Are there any new projects or initiatives that you are particularly excited about?
We are already serving customers across India, having branches in Pune, Bangalore, Jaipur, Chandigarh, Nagpur to cater to customers. Within India, we plan to further expand and strengthen our presence in the NCR region, Chennai, Hyderabad, Gujarat and Kerala.
Even though our main target market is India, going forward, we intend to expand our offerings in neighbouring countries and in the Middle East / Gulf, Eastern & Southern Africa. The target countries for immediate future expansion are Nepal, Bangladesh, Sri Lanka, UAE, Oman, Saudi Arabia, Kenya, Tanzania, Zambia, Uganda, South Africa.
By the end of this year, we will open an office in the UAE for international sales and projects.
How do you see technology shaping the future of the gas industry in India? Are there any specific technological advancements that you believe will have a significant impact on the industry in the next few years?
The gas industry in India is undergoing significant changes, driven by a number of factors, including the increasing demand for natural gas, the need to reduce greenhouse gas emissions, and the government’s focus on promoting cleaner and more efficient sources of energy. Technology is playing a key role in this transformation, with a range of innovations driving greater efficiency, safety, and cost-effectiveness across the gas value chain.
One of the key areas where technology is expected to have a significant impact is in the exploration and production of natural gas. The development of advanced seismic imaging technologies and drilling techniques is enabling companies to more accurately identify and extract gas reserves, while new technologies like hydraulic fracturing and horizontal drilling are making it possible to access previously inaccessible gas reserves.
Another area where technology is playing a critical role is in the transportation and distribution of natural gas. Advanced pipeline technologies are enabling the construction of larger and more efficient pipelines, while innovations in compressor technology are reducing energy consumption and increasing reliability. The development of smart grid technologies and digital solutions for monitoring and control is also helping to improve the efficiency and reliability of the gas distribution system.
Technology is being developed to produce LPG in a more eco-friendly manner. Advanced production technologies are being used to extract LPG from natural gas with minimal impact on the environment. Moreover, research is being conducted on developing LPG from renewable sources like bio-waste, which will make LPG production more sustainable.
In addition to these technological advancements, there are a number of other innovations that are expected to have a significant impact on the gas industry in India in the coming years. For example, the development of renewable natural gas (RNG) or bio-LPG (rDME) technologies is enabling the production of gas from waste products like food and agricultural waste, providing a new source of renewable energy that can help to reduce greenhouse gas emissions.
Overall, technology is expected to play a critical role in shaping the future of the gas industry in India, helping to drive greater efficiency, safety, and sustainability across the value chain. As the industry continues to evolve, we can expect to see further innovation and technological advancements that will help to drive the growth and transformation of the industry in the years to come.
The Indian government has recently announced several policy initiatives to promote the use of natural gas in the country. What is Pune Gas Company’s view on these initiatives, and how do you see them impacting the industry in the coming years?
The Indian government’s policy initiatives to promote the use of natural gas are aimed at increasing the share of natural gas in the country’s energy mix and reducing reliance on more polluting sources of energy. The initiatives include the expansion of natural gas infrastructure, the promotion of the use of natural gas in transportation, and the implementation of measures to increase the affordability and availability of natural gas.
These initiatives are likely to have a positive impact on the Indian gas industry, as they are expected to increase demand for natural gas and drive investment in the sector. The expansion of natural gas infrastructure, for example, will make it easier to transport and distribute natural gas, while the promotion of the use of natural gas in transportation will create new markets for the industry.
The implementation of measures to increase the affordability and availability of natural gas is also likely to be a key driver of growth in the industry. By making natural gas more accessible and affordable, the government is expected to stimulate demand for natural gas across a range of sectors, including power generation, industry, and transportation.
Overall, the Indian government’s policy initiatives to promote the use of natural gas are expected to have a significant impact on the industry in the coming years, driving growth and investment and positioning natural gas as an important source of energy for India’s future.
What are some of the key challenges that Pune Gas Company faces as it looks to expand and grow its operations in India? How do you plan to address these challenges?
In the start, LPG was not even easily accessible or available to common people for household cooking, and hence the demand for its products was very less. There were no standard or defined regulations for products manufactured in India. The right know-how and the correct technical knowledge was also lacking for designing and selecting the right solutions for the systems and products. Even now, many non-standard products are still manufactured and sold in the country. Hence, we are developing our own quality standards in accordance with the various international standards and best practices, keeping in mind the Indian business and customer preferences and creating modular, packaged and plug and play systems and products in which the customer is guaranteed a hassle-free experience along with the best product quality at a low-cost.
Our aim is to not just offer products, but also to impart knowledge and technical information to customers and other stakeholders in the LPG industry. So that they can understand and select the right products and solutions for themselves.