Will India’s gas shortage end soon? Gas imports from outside the Gulf countries increase, two more LNG cargoes depart for the country.

New Delhi. Two more liquefied natural gas (LNG) cargoes are headed to India to increase gas supplies for domestic consumers. A senior central government official said on Wednesday that public sector oil and gas companies have increased gas imports from outside the Gulf region amid the ongoing war with Iran in West Asia. Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, said at a press conference in the national capital that crude oil supplies are completely secure. She added that the current volume of crude oil arriving is more than what normally comes through the Strait of Hormuz.

“Several crude oil cargoes secured from various countries”
She said that oil marketing companies have secured several crude oil cargoes from various countries. While previously about 55 percent of crude oil arrived through the Hormuz route, now about 75 percent is coming through other routes. Regarding the increase in panic booking of LNG cylinders due to the West Asia crisis, he said that the normal delivery period for domestic LPG is still around 2.5 days, so customers do not need to book cylinders in a hurry.

Government monitoring energy supply amid the West Asia crisis
He said the government is continuously monitoring energy supply amid the West Asia crisis and taking necessary steps. The official said that gas and oil are being procured through alternative routes to ensure supply security. India imports about 60 percent of its LPG needs. He said that domestic LPG production has increased by 25 percent, and a larger portion is being supplied to domestic consumers following government measures.

“Refineries are operating at maximum capacity.”
He also stated that the country’s refineries are currently operating at maximum capacity, with some operating at over 100 percent capacity. The country’s total gas consumption is 189 mmscmd (million metric standard cubic meters per day). Of this, 97.5 mmscmd is produced domestically, while the rest is imported. He stated that approximately 47.4 mmscmd of gas supply has been affected due to the “force majeure” situation caused by the Iran war. Concerns about natural gas shortages increased when Qatar temporarily suspended production due to Iran’s attacks. Qatar is India’s largest supplier of LNG.

Meanwhile, Petroleum Minister Hardeep Singh Puri on Tuesday assured consumers that there is no shortage of LPG for domestic cooking. The central government on Tuesday issued an order under the Essential Commodities Act, directing that uninterrupted supply of domestic piped natural gas, LPG, and CNG for vehicles be given top priority.

LNG shipments through the Strait of Hormuz affected
According to the government’s assessment, the ongoing conflict in West Asia has affected LNG shipments through the Strait of Hormuz, and some suppliers have cited force majeure. Consequently, gas supplies may be diverted to priority sectors. The order states that domestic piped gas, CNG for transport, LPG production, pipeline compressor fuel, and gas for other essential needs will be prioritized. These are listed as Priority Sector 1. Furthermore, the central government has directed refineries and petrochemical units to maximize LPG production and utilize essential hydrocarbon resources for LPG production.