India Welcomes Two LNG Cargoes Amid Rising Imports Outside Gulf
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New Delhi, March 11 (NationPress) - Two liquefied natural gas (LNG) cargoes are currently en route to India to enhance the supply for local consumers. This comes as public sector oil and gas companies have increased imports from regions outside the Middle East due to the ongoing Iran conflict, as stated by a senior Central government official on Wednesday.
According to Joint Secretary of Petroleum and Natural Gas, Sujata Sharma, "Crude supply remains stable. Today's secured volumes surpass the usual deliveries from the Strait of Hormuz. Oil marketing firms have procured various crude shipments from multiple nations. Currently, approximately 75 percent of crude is sourced from routes apart from Hormuz, a rise from 55 percent previously," she mentioned during a press briefing.
Addressing the surge in LPG bookings caused by the Middle East situation, she assured that the typical delivery cycle for domestic LPG is 2.5 days, and there is no need for consumers to panic and order cylinders.
The government is actively overseeing energy supplies and implementing necessary measures in light of the Middle East crisis, she added.
"Efforts are underway to secure supplies through alternative routes. We rely on imports for 60 percent of our needs. Domestic LPG production has risen by 25 percent and is being allocated to household consumers following government initiatives to boost output," the official explained.
"Our refineries are functioning at peak capacity utilization, with some exceeding 100 percent of their capacity. The overall gas consumption stands at 189 mmscmd, with 97.5 mmscmd produced domestically while the remainder is imported. However, about 47.4 mmscmd of supply has been hampered due to force majeure circumstances related to the Iran conflict," she added.
Concerns regarding a natural gas shortage emerged after Qatar halted production due to attacks from Iran. Qatar is India’s primary supplier of liquefied natural gas.
On Tuesday, Petroleum Minister Hardeep Singh Puri reassured consumers that there is no LPG scarcity for household kitchens.
The Central government also issued directives under the Essential Commodities Act to ensure a continuous supply of piped natural gas for household kitchens, LPG, and CNG for transportation as a priority during the disruptions caused by the ongoing Middle East war.
The assessment indicated that the continuing conflict has disrupted LNG shipments through the Strait of Hormuz, and suppliers have invoked force majeure clauses, necessitating the diversion of natural gas to priority sectors, according to the order.
The directive states that priority allocation will be maintained, contingent on operational availability, to cover 100 percent of their average gas consumption over the past six months for domestic piped gas, CNG for transport, LPG production, and critical pipeline operational requirements, categorized as priority sector one.
The Centre has instructed refineries and petrochemical facilities to maximize LPG production and redirect key hydrocarbon streams to the LPG supply pool.