ONGC and CSIR-NCL Partner to Pilot Dimethyl Ether as a Sustainable LPG Alternative

Oil and Natural Gas Corporation (ONGC) and CSIR-National Chemical Laboratory (NCL) are set to begin an industrial pilot project for the production of dimethyl ether (DME) as an alternative to liquefied petroleum gas (LPG), according to news reports.
The project is expected to be developed over 3 years. The first year will largely focus on setting up the plant and related systems. Officials said ONGC will bear the operating cost of the pilot programme.
Industrial Pilot at Hazira
The pilot unit is planned at ONGC’s Hazira facility in Gujarat with an initial production capacity of 2.5 tonnes. The research and technology work for the project will be handled by the CSIR-NCL team in Pune.
The project will assess whether DME can be commercially used for industrial heating and processing applications. It will also examine production costs, operational feasibility, and supply chain requirements under industrial conditions.
Officials said the study could later support commercial-scale projects with capacities ranging between 100 and 500 tonnes per day. Discussions on larger plants of up to 1,000 tonnes per day have also taken place at a preliminary level.
Energy Supply Concerns Drive Interest
The development comes amid concerns over global energy supply disruptions linked to tensions in West Asia. India continues to depend on imports for a significant share of its LPG requirement, prompting plans to diversify fuel sources and increase domestic production.
Government officials had earlier directed refineries and petrochemical complexes to maximise LPG output. Measures such as diverting propane, butane and propylene streams towards LPG production have reportedly increased domestic supply by nearly 40%.
As per the news report, further expansion in LPG production remains limited due to infrastructure constraints and restricted well capacity. This has led to greater focus on alternative fuel options.
Indigenous Technology Under Evaluation
Scientists at CSIR-NCL have developed indigenous technology for DME production. The pilot project will test the technology at an industrial scale before any decision is taken on wider deployment.
The study will also evaluate long-term operational challenges and the commercial viability of DME production. The outcome of the pilot is expected to guide future decisions on industrial-scale adoption of the fuel in India.
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Conclusion
The study is expected to evaluate whether DME can be produced and supplied at an industrial scale for commercial use. The findings will be used to determine the feasibility of larger production facilities in the future.
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Published on: May 6, 2026, 3:19 PM IST

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