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How to Start LPG Cylinder Manufacturing Plant. Domestic and Commercial LPG Cylinders Production Project

Friday, October 13, 2017

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LPG Cylinder is an essential item for filling liquefied petroleum gas used for cooling purpose. The body of LPG cylinder is deep drawn in two pieces then these are welded together to make a compact unit without any leak and defect etc. LPG cylinders are in use in 5 Kg., 12 Kg., 14.2 Kg. & 19 Kg. capacities.

LPG Cylinder (Liquid Petroleum Gas) is used for domestic cooking purposes in many states as a main fuel source. The 14.2 kg cylinder is used for domestic usage and 19 kg for commercial usage and government has also introduced 5 kg cylinder for domestic and commercial usage.

The ultimate use of the LPG cylinder is for the storage and transportation of gas from one place to another. As the gas pipe line can only be managed to the nearby area of the gas producing Centre, and in India gas pipeline is only available in big cities.

LPG touches our lives in so many ways. From housing to health, from garments to glass, from livestock to hospitality.

 

Market Outlook

Domestic Liquefied Petroleum Gas (LPG) users consume a massive 90% of the total production of LPG in India for cooking purposes. LPG Cylinders plays crucial role in containing and transporting hazardous LPG from LPG filling plant to end consumer. [Approximately 3 million LP Gas Cylinders are delivered to Indian homes every day. It means, approximately 900 million cylinders in a year are delivered to homes for domestic consumption in India. This demand for LPG is increasing every day.

LPG Demand in India

·         Fourth largest consumer of LPG in the world after USA, China & Japan.

·         Third largest consumer in domestic sector in the world after China & USA.

·         Major marketing of LPG is Domestic Sector.

·         Home Delivery of 3 Million LP Gas cylinders per day (i.e 900 Million / year)

·         Steady Growth @ 8% p.a. in LPG Consumption in India.

The country’s domestic liquefied petroleum gas (LPG) consumption is expected to grow by nearly 10 per cent in 2017-18, over the last fiscal.

Domestic LPG consumption for 2016-17 stood at 21.5 million tonne, up nearly 10 per cent from the previous fiscal’s 19.6 million tonne.

Indian LPG imports have been registering some remarkable trends in the last 10 years. The growth trends over the last 10 years, 5 years and 1 year are: 17% CAGR (FY07 to FY17), 14% CAGR (FY12 to FY17) and 23%. At nearly 11 million tonnes in FY17, India surpassed Japan's imports at 10.6 million tonnes. A rapid increase in urban population combined with increasing LPG penetration in rural areas has resulted in a 10% growth in LPG consumption, making India the second largest LPG consumer in the World at 19 million tonne per year.

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