LPG Shortage Threatens Steel Output At Visakhapatnam Plant

Visakhapatnam: The disruptions in global fuel supplies due to the Middle East conflict have started affecting industrial production in Andhra Pradesh's Visakhapatnam, with a shortage of gas now impacting operations at the city steel plant.

Trade unions say the depletion of LPG (liquefied petroleum gas) reserves could soon disrupt steel production if fresh supplies do not reach on time. LPG plays a crucial role in several stages of the plant's production process. In the steel melt shop (SMS), the gas is used to cut blooms, an essential step before the next phase of production.

Around 4,000 blooms have to be cut every day to clear the beds and ensure that the continuous casting process runs smoothly. Only after this process is complete can the plant maintain its daily output of about 10,000 tonnes of finished steel.

Apart from bloom cutting, LPG is also used in multiple operations at the engineering shop, particularly during the degassing process at SMS-II. Officials say the plant consumes about 13 tonnes of LPG per day to meet its operational needs. While the total storage capacity of the facility is about 325 tonnes, the current stock is sufficient for only around ten days, say trade union representatives.

Presently, Indian Oil Corporation (IOC) supplies LPG to the plant. However, supply chains have been disrupted due to the ongoing war, leading to a shortage of LPG across sectors. The Union Ministry of Petroleum and Natural Gas has already instructed oil companies to give top priority to domestic consumption.

Recently, the Centre suggested that supplies should also prioritise fertiliser units and power plants, putting industries like steel manufacturing in a difficult position.

This is not the first time the steel plant has faced such a challenge. During the coal crisis in 2022, the Centre directed that boiler coal be supplied only to power plants. As a result, the Visakhapatnam Steel Plant struggled for nearly a month without receiving the required coal for operations.

Trade unions now fear that a similar situation could arise if LPG supplies are curtailed further. They are urging the Centre to treat the plant as a priority industrial unit during emergencies, warning that any prolonged disruption could bring steel production to a halt.

Meanwhile, Visakhapatnam MP M Sribharat has taken up the matter with Petroleum Ministry officials and reportedly requested them to ensure an uninterrupted LPG supply so that steel production at the Visakhapatnam plant remains unhampered. Officials are said to have responded positively to the request, offering some relief to workers and management at the plant.

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