← Concept Library · Economy
Economy GS 3 In the news 3 times

LPG vs. LNG

Understanding the Distinction

LPG (Liquefied Petroleum Gas) consists primarily of propane and butane — lighter hydrocarbons that liquefy at moderate pressure. It is used primarily for cooking fuel (LPG cylinders) and petrochemical feedstocks. LNG (Liquefied Natural Gas) is methane chilled to -162°C to reduce volume for shipping; it is used for power generation, industrial use, and city gas distribution. Both are critical to India's energy mix in distinct ways: LPG serves the retail cooking fuel market (including PMUY beneficiaries), while LNG fuels India's gas-based power plants and city gas distribution networks.

Key details
  • India is the world's second-largest LPG consumer and importer (after China); domestic production meets approximately 40% of demand
  • India's LNG regasification capacity: approximately 42.5 MMTPA across terminals at Dahej, Hazira, Kochi, Dabhol, Ennore, and others
  • India's LNG imports are predominantly from Qatar (approximately 45%) with growing contributions from the US, Australia, and Russia
  • The petrochemical sector (plastics, fertilisers) is a major LPG/LNG consumer alongside the domestic cooking fuel segment
In the news

● Tracked since March 07, 2026 · last seen April 15, 2026 · updates as the daily brief publishes

Related concepts
See it in today’s brief. Daily current affairs with every static concept explained in place.
Read the daily brief