India Secures Alternative Gas Routes Amid West Asia Conflict
Image Source: Internet
India's natural gas requirements have been impacted by force majeure conditions enforced by foreign suppliers due to the West Asia conflict, with nearly a quarter of its imports affected. To overcome the shortfall, the government is procuring supplies through alternative routes.
Almost 50% of India's oil imports pass through the Strait of Hormuz, which has been effectively shut by Iran following the start of its conflict with Israel and the US. Fuel and gas prices have surged, heightening worries in India, which depends on imports to meet around 85% of its energy needs.
The government has procured two LNG cargoes from new sources, which are on their way to India. India's crude oil supply remains secure, with daily consumption met by importing crude from about 40 countries.
Oil marketing companies have secured crude from different sources, with about 70% of their imports now coming from routes outside the Strait of Hormuz. Two crude cargoes are expected to arrive in India within a few days, further strengthening the supply position.
The government has also invoked the Essential Commodities Act to ensure gas allocation on priority to key sectors such as households and the automobile sector. The government has increased domestic LPG output by 25% and is giving priority to hospitals and educational institutions for non-domestic supplies of LPG.
A three-member committee has been set up to review allocations of cooking gas to restaurants, hotels and other commercial users. The government has absorbed a significant part of the increase in the cost of LPG to protect consumers.
