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India Eyes Australia, Canada Gas Deals Amid West Asia Conflict

India is actively scouting for alternative gas markets, with Australia and Canada offering supplies, as it seeks to diversify its energy basket amid the West Asia conflict. Government sources state the country maintains a comfortable energy security position with about eight weeks of total inventory for crude oil and petroleum products. Only around 40% of India's crude oil imports pass through the volatile Strait of Hormuz, limiting exposure to regional disruptions. The government is in talks with major producers and is closely monitoring the global energy market to ensure uninterrupted supplies.

Key Points: India Seeks Gas from Australia, Canada Amid Conflict

  • Australia & Canada offer gas to India
  • Only 40% of crude imports transit Strait of Hormuz
  • India has 8 weeks of crude & fuel inventory
  • Govt reviewing energy situation twice daily
3 min read

India looking at alternative markets to buy gas; Australia, Canada offered to sell amid W Asia conflict: Govt sources

India explores gas imports from Australia & Canada, diversifying energy sources. Govt says it has 8 weeks of fuel inventory, comfortable on energy security.

"India is in a very comfortable position regarding its energy security. - Government sources"

New Delhi, March 5

Australia and Canada have offered to sell gas to India as the country looks for other alternative energy sources amid the escalating West Asia conflict, government sources said on Thursday. The government is scouting for alternative markets to buy gas, as India currently imports 195 million metric standard cubic metres per day of gas, of which Qatar supplies 60 million mmscmd.

India is in talks with major oil producers and traders to buy crude and LPG. Sources said the government is in discussions with the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC). India is also in talks with the US to get insurance for ships.

The country recently signed a new contract with the UAE and the US to diversify its energy basket.

According to sources, India is reviewing the energy situation twice a day and is in a very comfortable position regarding its energy security. India's current position of stock is also seen to be comfortable, with stock being replenished every day.

As per the sources, there is no shortage of LPG or LNG as well as crude oil, in the world. The sources noted that India is in touch with other suppliers as well.

Amid turmoil in West Asia, government sources on Tuesday said that India has a total of eight weeks of crude oil and petroleum products inventory, that includes strategic reserves, and only about 40 per cent of India's crude oil imports transit through the Strait of Hormuz, significantly limiting exposure to regional disruptions.

They asserted that the country remains in a comfortable position on energy security amid the evolving situation in the West Asian region.

Sources said India is closely monitoring developments in the region but is well-prepared to manage any potential supply-side challenges due to adequate inventory levels and diversified sourcing.

According to sources, India currently has around 25 days of crude oil inventory. Additionally, the country maintains about 25 days of petrol and diesel inventory.

Overall, India has a total inventory cover of nearly eight weeks of crude oil and petroleum products, ensuring energy security in the event of short-term disruptions.

Only 40 per cent of India's crude moves through the Strait of Hormuz, and 60 per cent of the rest of the crude comes from other sources

India continues to import Russian crude as per previous contracts.

The sources further stated that India is in a comfortable position with respect to LPG and LNG supplies.

The government, according to sources, is keeping a close watch on the global energy market to ensure uninterrupted supplies for the country.

- ANI

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Reader Comments

S
Sarah B
While diversification is good, I hope the deals with Australia and Canada are cost-effective. The last thing we need is higher fuel prices for the common man. The government must ensure these alternatives don't lead to inflation.
P
Priya S
It's reassuring to know we have 8 weeks of inventory and are reviewing the situation twice a day! Shows the authorities are on their toes. Jai Hind! 🇮🇳 But we must also accelerate our shift to renewables - solar and wind are the future.
R
Rohit P
Good step. But what about the long-term contracts with Qatar? 60 million mmscmd is a huge amount. Shifting suppliers suddenly could have diplomatic repercussions. Hope the MEA is involved in these talks.
K
Karthik V
The fact that only 40% of our crude goes through the Strait of Hormuz is a major relief. It shows our import strategy has been geographically diversified for some time. This crisis just proves its worth.
M
Meera T
All this talk of being in a "comfortable position" is fine, but I just filled my gas cylinder and the price is still pinching. I hope these strategic moves eventually translate to stable or lower prices for households.

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