Letters of Intent for setting up rural LPG outlets will be issued by the end of the year, according to Mr A. Pandian, State-level Coordinator, Oil Industry, Kerala and Lakshadweep.

He said this while delivering the presidential address at the inaugural function of the State-level Oil and Gas Conservation Fortnight (OGCF) 2012 here on Monday.

Mr Pandian is also General Manager, Indian Oil, Kerala.

RURAL AREAS

The rural LPG outlet scheme, known as the Rajiv Gandhi Gramin LPG Vitaratk (RGGLV), intends to promote penetration of LPG cover into “low potential/rural areas.”

RGGLV is also expected to help prevent incremental deforestation by replacing carbon-intensive firewood burning with clean energy source of LPG in the rural outback, Mr Pandian said.

Launched in 2009, the first phase of the RGGLV is sought to be introduced in those States where coverage of LPG is less than 50 per cent.

It will be implemented in a “sustainable cluster” of villages having about 4,000 families.

A cluster will feature villages having a potential of average monthly sale of 600 cylinders a month of 14.2 kg and 1,800 customers based on a monthly per capita consumption of five kg.

STORAGE GODOWN

RGGLV would have an LPG storage godown of much smaller size compared to a normal distributorship godown. The LPG godown and showroom will be located close to each other.

The godown will store a minimum 300 filled cylinders enough to accommodate a truckload, which assumes a licensed capacity of about 5,000 kg of LPG.

LPG cylinders of 14.2 kg refills will be supplied to customers on a cash-and-carry-basis with no rebate.

Meanwhile, the oil industry comprising the principal OMCs (oil marketing companies) and new entrant gas distributor Gail (Gas Authority of India Ltd), has planned an entire sequence of events aimed at promoting conservation as a way of life during the fortnight in the State.

EVENT THEME

The State of Kerala accounts for a miniscule 3.827 per cent of the national consumption of petroleum products.

But this could go up with the laying of new and better roads as also gradual industrialisation of the State in the time to come.

“Save fuel yaani Save money” has been the enduring theme of the OGCF over the last three years, Mr Pandian said.

The country has total reserves (proved and indicated) of 1,201 million tonnes of crude oil and 1,437 billion cubic metres of natural gas as updated on April 1, 2010.

But domestic crude oil production has totalled up to no more than 33.69 million tonnes that year, which improved 12.5 per cent to 37.68 million metric tonnes the next year.

The respective figures for natural gas were 47.51 million cubic metres and 52.20 million cubic metres (a rise of 9.9 per cent year-on-year).

These figures are dwarfed by the huge consumption demand of 138 million tonnes in crude oil, which has left a huge deficit, which is serviced by imports amounting to as much as 75 per cent of the aggregate demand.

FUEL SUPPLY SHORTAGE

Going by the current consumption profile, it is expected that the country would run out of petroleum fuel options in another 10 years.

This is the background against which the Petroleum Conservation Research Association (PCRA) has been piloting the observation of the OGCF from mid-January every year, Mr Pandian said.

Earlier, Mr N. Sakthan, Deputy Speaker, State Assembly, inaugurated the event.

Among those who attended the event were Mr K. P. Ramesh, Deputy General Manager of Gail, Kochi; Mr K. Prasad, Senior Manager, Indian Oil, Kochi; Mr K. V. J. Rao, Senior Regional Manager (Retail), HPCL, Kochi; Mr P. M. Somachoodan, Area Marketing Manager, BPCL, Kochi (Kerala); Mr Ravisankar, Senior Manager, energy and Environment, BPCL, Kerala; and Mr Hari Kumar V. M., Senior Divisional Retail Sales Manager, Indian Oil, Thiruvananthapuram.

vinson@thehindu.co.in

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