Escalating tensions in the Middle East have raised concerns about global energy and supply chains. India, which relies heavily on imports for oil, gas, and fertiliser, also faces the risk of potential supply disruptions. This raises the question of how India will meet its energy and fertiliser needs if the situation worsens. In light of this risk, the government has accelerated several measures, including alternative supplies, strategic reserves, and new trade agreements, to ensure that the country’s needs are not affected.
India in talks with alternative energy suppliers
Qatar remains an important partner for India, supplying 60 million metric standard cubic meters per day (mmscmd) to the country. Australia and Canada have offered to sell gas to India as the country seeks alternative energy sources amid the growing conflict in West Asia. The government is looking for alternative markets to purchase gas, as India currently imports 195 million metric standard cubic meters per day (mmscmd), of which Qatar supplies 60 million mmscmd.
According to sources, India reviews its energy situation twice daily and is in a very good position regarding its energy security. India’s current stockpile situation also appears good, with stocks being replenished daily. Sources also state that there is no global shortage of LPG or LNG, nor of crude oil. Sources also stated that India is in contact with other suppliers.
Talks with major oil producers and traders
India is in talks with major oil producers and traders to purchase crude and LPG. Sources said the government is in talks with the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC). India is also in talks with the US to obtain insurance for ships. The country recently signed new contracts with the UAE and the US to diversify its energy basket.
India has eight weeks of petroleum product stock
According to government sources, India has a total stock of crude oil and petroleum products, including strategic reserves, for eight weeks. Only approximately 40 per cent of India’s crude oil imports pass through the Strait of Hormuz, significantly reducing the risk of disruptions in the region. Amidst the changing situation in the West Asian region, the country is in a good position for energy security. India currently has approximately 25 days of crude oil stock. Additionally, the country also has approximately 25 days of petrol and diesel stock.
According to government sources, there are currently no plans to ration petrol and diesel in India. The country has sufficient reserves of these fuels, which are believed to be sufficient to meet current demand. Sources said the government and related companies are already preparing to address the energy challenges arising from rising tensions in West Asia. In this regard, the Gas Authority of India Limited (GAIL) may declare force majeure if necessary to divert gas supplies to priority sectors such as power generation and the fertiliser sector.
Emergency measures for priority sectors
The government says it is continuously monitoring the current situation and will take additional steps, if necessary, to maintain a smooth supply chain and ensure that energy availability in the country is not affected.