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India Secures Crude Supply, Boosts LNG Amid West Asia Crisis

A senior government official stated India's crude oil supply remains secure through diversified procurement from about 40 countries, despite tensions affecting global energy routes. The government has absorbed cost increases to protect consumers and is prioritizing LPG for the domestic sector and essential services like hospitals. To strengthen domestic availability, refining units have optimized production, increasing LPG output by approximately 25%. Additionally, gas companies have procured LNG cargoes from new sources, with two already en route to India.

Key Points: India's Crude Supply Secure, LNG Cargoes Procured: Official

  • Crude supply secure via 40-country imports
  • Domestic LPG production up 25%
  • LNG cargoes secured from new sources
  • Refineries operating at full capacity
  • Priority gas for tea, fertiliser, hospitals
2 min read

India's crude supply remains secure, gas companies have procured LNG cargoes from new sources: Senior government official

India ensures crude oil security via diversified imports, boosts domestic LPG production by 25%, and secures new LNG cargoes amid Red Sea tensions.

"Our gas companies have procured LNG cargoes from new sources. Two LNG cargos are on their way to India. - Sujata Sharma"

New Delhi, March 11

India's crude supply remains secure through diversified procurement amid the West Asia crisis that has affected global energy routes, Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said on Wednesday.

"India's crude supply remains secure. Our daily consumption is about 55 lakh barrels. Through diversified procurement, the volumes we have secured today exceed what would normally have arrived through the Strait of Hormuz during this period," Sujata Sharma said at a joint press briefing.

Amid LPG supplies to India impacted by tensions in West Asia, Sharma said the government has absorbed a significant part of the cost increase to the increase to protect the consumers.

"Currently, LPG is being directed to the domestic sector. For non-domestic LPG, priority is being given to essential sectors such as hospitals and educational institutions. The committee is consulting with state authorities and industry bodies to finalise the plan to ensure that available LPG is distributed fairly and transparently," she said addressing an Inter-Ministerial press briefing.

Sharma said two LNG cargos are on their way to India.

"Our gas companies have procured LNG cargoes from new sources. Two LNG cargos are on their way to India," she said.

Speaking about crude supplies, she said India imports crude from about 40 countries.

She added that domestic refineries are currently operating at full capacity, and in some cases even above capacity, to ensure a steady supply of petroleum products across the country.

The government has also decided to prioritise gas supplies for key sectors such as tea production, gas grid operations and allied activities, as well as fertiliser manufacturing, which are critical for both agriculture and industrial activity.

Sharma noted that the country imports around 60 per cent of its LPG requirements, and about 90 per cent of these imports pass through the Strait of Hormuz.

To strengthen domestic availability, the government has directed refining and petrochemical units to optimise LPG production. As a result, domestic LPG production has increased by about 25 per cent, she said.

The additional production is being directed primarily towards household consumers to ensure uninterrupted cooking gas availability, Sharma said.

For commercial LPG consumption, the government has identified priority sectors including educational institutions and hospitals to ensure essential services remain unaffected.

Sharma urged people not to rush book LPG cylinders. "As a temporary demand management measure, the minimum gap between LPG bookings has been increased from 21 days to 25 days," she said.

- ANI

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Reader Comments

P
Priya S
Good to know supplies are secure, but I hope the 'absorbed cost increase' doesn't mean a huge burden on the exchequer that we pay for later through other taxes. Also, increasing the gap between cylinder bookings to 25 days is tough for large families. A more nuanced approach would help.
R
Rohit P
Prioritizing fertilizers and tea production is crucial. These are the backbone of our rural economy and exports. If these sectors get gas, it prevents a chain reaction of price hikes in essential items. Smart thinking!
S
Sarah B
As someone who recently moved to India, I find the government's detailed communication on energy security impressive. The transparency about the Strait of Hormuz dependency (90% of LPG!) and the active steps to find new LNG sources is commendable.
V
Vikram M
The 25% increase in domestic LPG production is the key takeaway for me. We must reduce this import dependency in the long run. Jai Hind to our refinery workers operating above capacity! 💪
K
Kavya N
Hope the 'fair and transparent' distribution plan for non-domestic LPG is implemented properly. There should be a clear portal for hospitals and schools to register their needs, so no one hoards. The message 'don't rush to book' is important, panic helps no one.

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