LPG Supply Disruptions Impact Operations at RINL-Visakhapatnam Steel Plant

India’s steel sector is beginning to feel the ripple effects of global geopolitical tensions, with Liquefied Petroleum Gas supply disruptions impacting operations at the RINL-Visakhapatnam Steel Plant. The development comes at a time when concerns over LPG availability are rising across both industrial and domestic segments due to ongoing instability in West Asia.

RINL, a major public sector steel producer, relies heavily on LPG for critical operations within its Steel Melting Shop. The plant requires around 12 to 13 tonnes of LPG daily to operate its Continuous Casting Machines, where high-temperature steel blooms are processed and cut with precision. Unlike conventional cutting methods, these processes demand specialised LPG-based oxy-fuel systems to handle extreme heat and thickness.

Recent supply disruptions led to a sharp decline in LPG inventory at the plant, with stock levels reportedly falling to nearly 75 tonnes. This created operational uncertainty and raised concerns about potential disruptions in production schedules. The situation prompted urgent intervention from plant management and trade unions, who engaged with suppliers to restore normal supply.

Relief came as Indian Oil Corporation resumed LPG deliveries, dispatching tankers to the plant over consecutive days. This has helped stabilise operations, though industry observers note that the incident underscores the vulnerability of industrial fuel supply chains to global events.

The role of LPG in steel manufacturing is both technical and essential. In oxy-fuel cutting, LPG acts as the primary fuel to generate a high-temperature flame, while oxygen is used to oxidise and cut through molten steel. This method ensures accuracy and efficiency, particularly for large and fast-moving steel sections that cannot be processed using mechanical tools.

Experts point out that while alternative fuels exist, LPG remains a preferred choice due to its stability, safety and cost-effectiveness compared to other gases. However, the current situation highlights the need for diversified energy sourcing and improved supply resilience in the steel sector.

As India continues to scale up infrastructure and manufacturing, ensuring uninterrupted fuel supply will remain critical to sustaining industrial productivity and growth.