New Delhi, March 11 – Two shipments of liquefied natural gas (LNG) are arriving in India to bolster supplies for domestic consumers, as public sector oil and gas companies have increased imports from outside the Middle East amid the Iran conflict, a senior official from the central government said on Wednesday.
"Crude oil supplies remain secure. The volume secured today exceeds what would normally arrive through the Strait of Hormuz. Oil marketing companies have secured various crude cargoes from different countries. Currently, about 75 per cent of crude oil is coming from routes other than the Strait of Hormuz, compared to 55 per cent previously," said Sujata Sharma, Joint Secretary, Petroleum and Natural Gas, at a press conference here.
Regarding the panic buying of LPG triggered by the Middle East crisis, she stated that the normal delivery cycle for domestic LPG remains 2.5 days, so customers do not need to rush and book cylinders.
She added that the government is constantly monitoring energy supplies and taking important measures in the face of the Middle East crisis.
"We are procuring through alternative routes to secure supplies. We import 60 per cent of our needs. Domestic LPG production has increased by 25 per cent and is being directed to household consumers after the government took steps to increase output," the official said.
"Our refineries are operating at maximum capacity, with some even operating at more than 100 per cent of their capacity. The total gas consumption is 189 mmscmd, of which 97.5 mmscmd is produced domestically, while the rest is imported. About 47.4 mmscmd of supply has been affected due to the Iran conflict," she added.
Concerns over a natural gas shortage arose after Qatar paused production due to attacks launched by Iran. Qatar is India's biggest supplier of liquefied natural gas.
Petroleum Minister Hardeep Singh Puri also assured consumers on Tuesday that there is no shortage of LPG for household kitchens.
On Tuesday, the central government also issued orders under the Essential Commodities Act to ensure an uninterrupted supply of piped natural gas for household kitchens, as well as LPG and CNG for transport, as a priority amid disruptions in supplies due to the ongoing conflict in the Middle East.
The order states that the ongoing conflict in the Middle East has disrupted liquefied natural gas shipments through the Strait of Hormuz, and suppliers have invoked force majeure clauses, which would entail diverting natural gas to priority sectors.
The order states that priority allocation shall be maintained, subject to operational availability, to 100 per cent of their average past six-month average gas consumption for the supply of natural gas for domestic piped natural gas supply, compressed natural gas for transport, LPG production, including LPG shrinkage requirements, as well as pipeline compressor fuel and other essential pipeline operational requirements. This has been listed as priority sector 1.
The Centre has directed refineries and petrochemical units to maximise the production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
