1. India – A Driver for Asian LP Gas Demand Growth
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

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 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
Asia: Moderate Demand Growth in LPG to Continue through 2015

6. LPG Production in Asia 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
Rise in LPG Production in Asia- New refining Capacity

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
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. Driving Demand for cleaner fuel i.e. L P Gas
Indian Economy
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
GDP Growth In India
Per Capita Income
Driving Demand for cleaner fuel i.e. L P Gas

11. 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. Driving Demand: Awareness in females on Clean & Convenient fuel
Social Environment
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
Literacy Rate In India
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
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. Huge Potential in rural areas- needs to be tapped
Penetration of LPG
Urban
Rural
Total
Population March 2009 in Million
326.2
838.8
1165
Households in Million
93.1
156
249
LPG connections as of in Million
79.2
26.5
105.7
Penetration
85%
17%
42%
Per capita consumption (Kg/year)
128 83
117
Huge Potential in rural areas- needs to be tapped

15. Additional 4.0 MMT LPG demand in Domestic Segment by 2015
Vision 2015 & Govt. Policies
New LPG Connections:
Increasing LPG customer population from 107 millions to 160 millions by 2015
Raise population coverage from 57% to 75%
Common LPG Kitchen:
Opening up in all villages with population > 5000 as a part of Corporate Social Responsibility (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
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 Expected Demand by 2015: 15.9 MMT
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
Industry Demand at 2010
Domestic : 11.1 MMT
Industrial : 1.1 MMT
Industry Demand at 2015
Domestic : 13.5 MMT
Industrial : MMT
Expected Demand by 2015: 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
Infrastructure Development
Women Empower-ment
Increase in Literacy
Focus on Rural Areas
Regulation on climate changes
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

22. Thank You 22

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