Increasing tensions in the Middle East have increased concerns about global energy and supply chains. India, which is largely dependent on imports for oil, gas and fertilizers, is also facing the threat of possible supply disruption. In such a situation, the question is arising that if the situation worsens then how will India meet its energy and fertilizer needs. In view of this risk, the government has intensified work on several steps like alternative supplies, strategic reserves and new trade agreements, so that the needs of the country are not affected.
India is also in touch with other suppliers regarding gas and crude.
Qatar currently 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 looks for alternative energy sources amid the growing West Asia dispute. The government is looking for alternative markets to buy gas, as India currently imports 195 million metric standard cubic meters per day (mmscmd) of gas, of which Qatar supplies 60 million mmscmd.
According to sources, India is reviewing the energy situation twice a day and is in a very good position regarding its energy security. The current stock position in India is also looking good, and the stock is being replenished every day. According to sources, there is no shortage of LPG or LNG as well as crude oil in the world. Sources said that India is also in touch with other suppliers.
Talks are being held with big oil producers and traders
India is in talks with big oil producers and traders to buy crude and LPG. Sources said the government is in talks with the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC). India is also in talks with the US to get insurance for ships. The country recently signed a new contract with UAE and US to diversify its energy basket.
India has eight weeks of petroleum products stock
According to government sources, India has a total of eight weeks of crude oil and petroleum products stock, including strategic reserves, and only about 40 percent of India’s crude oil imports pass through the Strait of Hormuz, significantly reducing the risk of problems in the region. Amidst the changing situation in the West Asian region, the country is in a good position in terms of energy security. India currently has crude oil stock of about 25 days. Apart from this, the country also has petrol and diesel stock of about 25 days.
There is no need for rationing of petrol and diesel
According to government sources, there is currently no plan to rationing petrol and diesel in India. There is sufficient stock of these fuels in the country, which is considered sufficient to meet the current demand. Sources said that the government and related companies are already making preparations to deal with the energy challenges arising due to increasing tension in West Asia. In this sequence, Gas Authority of India Limited (GAIL) can declare force majeure if needed, so that the gas supply can be diverted towards priority areas like power generation and fertilizer sector.
The government says that the current situation is being continuously monitored and if necessary, additional steps will be taken to maintain the smooth functioning of the supply system. This can ensure that the availability of energy in the country is not affected.
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