Importance of Secure Supply Chains Behind LPG Distribution

As we move towards a more carbon-neutral energy solution, LPG stands out as a versatile and convenient fuel source that powers cooking technologies, home appliances, industries and transportation. Its residual free-burning and widespread availability, make LPG a cornerstone of modern energy systems worldwide. In this seamless flow of LPG production to widespread consumption, lies a complex supply chain which has to be safeguarded to ensure uninterrupted delivery and safety for all stakeholders involved. 

LPG also known as Liquified Petroleum Gas, is a gas which is converted into liquid format and packed and sealed in a cylinder made of carbon steel. It helps in creating a decentralised flexible supply chain where the cylinders are not vulnerable to the supply chain and can be distributed from anywhere to anywhere on earth, using an optimal network of rail, roadways and sea. Let’s understand how it is distributed and how LPG gas agency plays a key role in supply chain management. 

Understanding the LPG supply chain

The distribution of LPG goes through many stages, starting from its source to end users, which is why vying into meticulous planning and execution helps in maintaining efficiency and safety. 

• Production: LPG is primarily produced through the refining of crude oils, once extracted kit undergoes the purification process and is converted into liquified form at a stable temperature to make it suitable for transportation and storage. 
• Storage and Transportation: LPG transportation is conducted via pipelines, ships, railcars, or trucks to distribution centres and storage facilities strategically located across regions. These storage facilities act as hubs from which LPG is further distributed to LPG gas agency/distributors or end-users.
• Distribution: Retailers such as LPG gas distributors or LPG gas agencies receive LPG from bottling plants and nearest distribution centres and then supply it to residential, commercial, and industrial consumers. This stage involves the final leg of the journey, where LPG is transported through the piped network to individual programs. 

Importance of Secure Supply Chain

Safety

When it comes to a long-supply chain, firstly LPG is imported from the best of places, transferred to the bottling plant to fill LPG into different cylinders as per the distribution network and demand, then transferred to the first-contact distributors, from where it goes to retailers and then to LPG gas agency, lastly to the end-consumer. In this complicated supply chain, the safety of handling LPG is of paramount importance. 

Reliability

A secure supply chain enhances the reliability of LPG distribution by minimising theft, sabotage, or logistical challenges. Reliability is crucial, especially in regions heavily dependent on LPG for cooking, heating, and industrial processes. Ensuring a steady supply of LPG contributes to energy security and also socioeconomic stability. 

Quality Control

When it comes to supplying of LPG, the role of quality assurance is crucial to maintain, so that LPG procured from refineries reach unadulterated to the end-consumer. For this, there are batch testing plants and bottling plants where quality checks are done and there is secured quality control measures at every stage to prevent contamination and degradation. At Shivgas, we provide propane-rich LPG to our consumers, to maintain that we have quality testing procedure setups across our contact to maintain the quality of the LPG reaching end consumers. 

Preventing Counterfeiting and Adulteration

In the supply chain when LPG is transported from location A to B there is a chance it can be adulterated if the supply chain is unregulated. For this, we have a fleet of trucks and LPG pipelines that minimise the risk of adulteration. Our sector runs on trust and product integrity, for which each batch leaving our bottling plant is checked around various quality-checking parameters which are then checked as per the standard regulatory compliance set by the Petroleum and Natural Gas Regulatory Body (PNGRB), India and BIS. This is again checked after delivery at the LPG gas distributor’s storage and then checked again when it reaches the LPG gas agency. This process includes employing technology such as tamper-evident seals, tracking systems, and authentication measures to prevent unauthorised access and ensure the authenticity of LPG. 

Implementation of Security Measures

Risk Assessment

To create a seamless supply chain, LPG gas agencies, or the involved stakeholders of the supply chain need to conduct risk assessments. This means including challenges and factors which can be hindrances in the supply chain. It helps in the creation of better and more efficient solutions and solution statements if any problem which has been identified comes through. 

Denying Unauthorised Access

To ensure the supply chain is safe and secure, LPG gas companies need to create a system where only authorised personnel are allowed to handle the supply chain. 

Training and Awareness

Training programs and awareness programs for personnel involved in LPG distribution are a must to mitigate risk in ensuring a secure supply chain. Individuals equipped with the knowledge and skills help in recognising security threats so they respond appropriately. 

Conclusion

LPG gas today stands as one of the most reliable energy fuels for residential, commercial and industrial applications. LPG is ubiquitous and used in cooking, heating, refrigeration, the metal melting industry, the HoReCa industry, and other endless applications. Being a highly flammable gas, proper security measures must be adopted in the supply chain that ensures gas reaching the end consumer is safe to use. 

Shivgas upholds high value when it comes to maintaining a secure supply chain. Starting from importing LPG to creating stringent security measures across the supply chain, we commit to quality. 

Interested in LPG gas dealership? Reach out to us by applying for a dealership today.