West Asia conflict & gas market disruptions: What is DME and how can it replace LPG? 

India is examining the use of dimethyl ether (DME) as a possible substitute for liquefied petroleum gas (LPG) as global oil and gas market disruptions and geopolitical tensions raise concerns over fuel supply security. Scientists, policymakers and public sector energy companies are evaluating whether DME can help reduce dependence on imported LPG, which is widely used for cooking and heating across the country.

The renewed focus on DME comes at a time when volatility in global crude oil and gas markets, partly driven by conflict in West Asia, has increased the risk of supply disruptions. LPG prices have also seen pressure due to supply chain constraints, prompting discussions on developing alternative domestic fuels that can be produced at scale.

What is DME?

Dimethyl ether, or DME, is a clean-burning synthetic fuel that can be produced from multiple feedstocks such as natural gas, coal, biomass, or methanol derived from captured carbon dioxide. Because its physical and combustion properties are similar to LPG, DME can be used as a substitute for LPG either by blending it with LPG or by using it as a standalone fuel in specially designed burners.

Scientists say that replacing LPG with DME would not require major changes to household infrastructure. Existing cylinders, regulators, hoses and burners can be used with minor modifications, making the transition technically feasible. The Bureau of Indian Standards (BIS) has already notified standards for blending DME with LPG for domestic, commercial and industrial use, allowing flexibility in fuel composition.

Apart from reducing import dependence, DME is also considered environmentally cleaner because it produces fewer particulates and lower greenhouse gas emissions compared with conventional fossil fuels.

Plans to scale up DME production

The Council of Scientific and Industrial Research – National Chemical Laboratory (CSIR-NCL) has developed a patent-protected process to produce DME using an indigenously designed catalyst that allows efficient conversion of methanol into DME. The technology is now being prepared for scale-up through an industrial demonstration plant with a capacity of about 2.5 tonnes per day, expected to be ready within six to nine months.

The pilot project is intended to pave the way for commercial plants with capacities ranging from 50 to 100 tonnes per day. Scientists said discussions are under way with oil public sector undertakings and bioenergy companies to explore commercial-scale production.

Researchers have also developed a prototype flex-fuel burner that can operate on LPG, DME or any blend of the two. The burner has been tested for safety and performance, showing that the fuel can be used in household applications without major redesign of cooking systems.

Former CSIR chief Raghunath Mashelkar said, “A national emergency requires emergent action. When global chokepoints threaten LPG supplies, Indian innovation has the capability to secure energy sovereignty. CSIR-NCL’s indigenous dimethyl ether (DME) technology can help power household kitchens using locally produced fuel.”

He saod DME is a viable substitute for LPG, with the added advantages of cleaner combustion, lower NOx and SOx emissions, and greater strategic resilience. It can be produced from methanol derived from domestic coal or biomass, making it a strong step towards energy self-reliance.

“CSIR-NCL has already demonstrated the indigenous DME technology at the 250 kg per day scale, and industry partners are ready to quickly build a 2.5-tonne-per-day demonstration plant. This project requires support from the Centre for High Technology, which has funds meant for such initiatives. The government is fully aware of the urgency of the situation,” Mashelkar said.

Why India is looking at DME now

India imports a large portion of its LPG requirement, making the country vulnerable to global price spikes and supply disruptions. Expanding domestic DME production could help reduce foreign exchange outgo on fuel imports while improving energy security.

However, large-scale adoption will require development of supply chains, storage and distribution systems, and coordination between research institutions, oil companies and policymakers.

Although the move is still at an exploratory stage, the push for DME reflects India’s broader strategy to diversify its energy mix and prepare for uncertainties in global fuel markets, while ensuring stable and affordable cooking fuel for households and businesses.