Measures: 1kg Indane Logo = 11-12 kgs of wood, 13-14 kgs of coal, 2 kg of furnace oil, 1.4 NM3 of Natural Gas, 13.8 Kwh of electricity

PNG vs LPG Cost Comparison (ILLUSTRATION)

1 MMBTU of NG theoretically produces 252164 Gross Kcal (GCV) of energy.

Net Calorific Value (NCV) is 90% of Gross Calorific Value.

Effective NCV of 1 MMBTU produces 226950 kcal of energy.

The cost of NG per unit in Faridabad as on July 25 is Rs 1748/- inclusive of 6.3% VAT (no input credit allowed).

Hence, the cost to the company is Rs 1748/- per MMBTU.

Which means 226950 Kcal costs Rs. 1748/- OR Rs. 7.70 per 1000 Kcal.

1 Kg of LPG theoretically contains 11833 Kcal; however, for practical purposes we can safely take 11500 Kcal as actual value.

LPG as on July 25 is being supplied @ Rs. 63.50 basic per Kg and GST is refundable to you.

Which means 11500 Kcal costs Rs. 63.50 OR Rs. 5.52 per 1000 Kcal.

LPG @ Rs. 5.52 PER 1000 KCAL

NG @ Rs. 7.70 PER 1000 KCAL

As on July 25, PNG is 28% more expensive than LPG

FURNACE OIL vs LPG COMPARISON

Parameter FO LPG
Net Calorific Value 9500 Kcal/Kg * 11800 Kcal/Kg
Density 0.97
Burning Efficiency 70% 95%

* However, FO is billed in Litres.

Hence, 1 Ltr of FO is equivalent to:

9500 × 0.97 × 0.70 / 11800 × 0.95 = 0.57 Kg LPG

Based on various practical conversions, we consider 1 Ltr of FO is equivalent to 0.5 Kg of LPG.

Other Benefits

  • Very low maintenance in comparison with FO burners
  • Very high efficiency with direct firing system

As per this calculation, if one burner consumes 100 Ltr. of FO per day, it will consume approximately 50 Kg of LPG per day.

Direct savings in cost is 45%

Indirect Savings

  • Maintenance free (no soot formation, no more dirty walls, no pitting, no burner cleaning required)
  • Pollution free (better worker health and life conditions)
  • Low operational cost (no electrical pumps required to pump the fuel)

Cost Comparison: LPG vs FO / HSD / Electricity / PNG / Wood / Petcoke

FUEL Avg Price* / kg or unit Gross Calorific Value (Kcal /kg / unit) Thermal Efficiency % Net Calorific Value (Kcal /Kg) Cost of 10,000 Kcals Savings in LPG vs Fuel
LPG 75.5 11800 95 11210 67.4 -
Furnace Oil 31 9500 70 6650 46.6 -44.5%
HSD 90 10500 75 7875 114.3 41.1%
Electricity 9 860 97 834.2 107.9 37.6%
PNG (Gail) 69 8500 90 7650 90.2 25.3%
Wood 4 4400 30 1320 30.3 -122.3%
COAL 7.6 5200 40 2080 36.5 -84.3%
HSD/ltr: 58    HSD/Kg: 70.3    HSD 1 ltr = 0.825 Kg
*Prices are subject to market revisions. We have taken average prices.

Official Government Approval

The Haryana State Pollution Control Board has officially approved LPG as a recommended fuel for industrial units in Haryana, in accordance with the Air (Prevention and Control of Pollution) Act, 1981.

Document: Office Order No. 4023-4076 dated 12/12/2018

Issued by: HSPCB, Panchkula

Subject: Inclusion of LPG as Recommended Fuel for Industrial Use