India diversifies LNG imports from 6 to 15 countries amid West Asia crisis
New Delhi, Aug 10
India has diversified its sources for the import of liquefied natural gas from six countries earlier to a total of 15 countries in order to safeguard its energy supplies against supply chain disruptions due to the West Asia crisis, the Parliament was informed on Monday.
The country has also broadened its crude oil sourcing network, with imports now coming from 41 countries compared with 27 earlier, Minister of State for Petroleum and Natural Gas Suresh Gopi said in a written reply to a question in the Rajya Sabha.
"This diversification has reduced dependence on any particular country, region or transit route and enhanced India's ability to manage supply disruptions and market volatility," he said.
The minister said that the risks to energy supplies are regularly monitored and global market conditions assessed in coordination with public-sector oil and gas companies and other stakeholders.
The government said it takes measures as required to ensure the uninterrupted availability of crude oil, LNG, and petroleum products.
India imports over 85 per cent of its crude oil requirement, which makes it crucial for the country to ensure supply chain resilience and access to multiple sources of energy in order to reduce the risk of sudden disruptions during a period of geopolitical uncertainty in which the global energy market has turned highly volatile.
Alongside diversifying supply sources, the government is also expanding its strategic petroleum storage capacity to strengthen the country's ability to deal with supply shocks.
Indian Strategic Petroleum Reserve Ltd (ISPRL) has established three strategic petroleum reserve facilities with a combined capacity of 5.33 million metric tonnes (MMT) at coastal sites in Andhra Pradesh and Karnataka. These reserves also come in handy when crude prices suddenly shoot up in the global markets. The stored crude can be used by the public sector oil refineries to tide over such periods of extreme volatility.
The government has also approved two additional commercial-cum-strategic petroleum reserve facilities with a combined capacity of 6.5 MMT in Odisha and Karnataka. The projects at Chandikhol in Odisha and Padur in Karnataka were approved in July 2021.
— IANS
Reader Comments
Good to see the government being proactive about energy security. The strategic petroleum reserves at 5.33 MMT is a decent start, but with our consumption, we need to push for more. The 6.5 MMT expansion in Odisha and Karnataka is welcome news. Hope the timelines are met without delays.
Nice to see India playing smart in the global energy market. But I'm wondering about the pricing - are we getting better deals with more suppliers or just more options? Also, these strategic reserves need to be maintained properly, not just on paper. Hope the implementation is as good as the intention.
As someone who follows energy markets, I think India's approach here is quite strategic. Diversifying LNG suppliers is textbook risk management. The 15-source network gives India good bargaining power too. Smart move, and the timing couldn't be better with all the instability in the Middle East.
It's all good on paper, but I wish the government would focus more on renewable energy too. We're still heavily dependent on fossil fuels. Diversifying imports is just a short-term fix; the long-term solution is investing in solar, wind, and green hydrogen. Still, better late than never on diversifying.
Remember the 2022 petrol price hikes? This is exactly why we need such measures. More suppliers = more security = less panic when global markets go crazy. The government deserves credit for learning from past vulnerabilities and acting on it. 👏👏
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.