No LNG shortage in India, assures Modi government
What's the story
Amid fears of a gas shortage, the Indian government has confirmed that two liquefied natural gas (LNG) cargoes are on their way to the country. Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas (MoPNG), made the announcement during a press conference today. She also assured that crude supply remains secure despite global tensions.
Assurance
OMCs secure various crude cargoes from different countries
Sharma said the volumes secured today exceed what would normally arrive from the Strait of Hormuz. She added that Oil Marketing Companies (OMCs) have secured various crude cargoes from different countries, with 75% coming from routes other than Hormuz, up from 55% earlier. Addressing panic booking of LPG in India, Sharma assured that "Our normal delivery cycle for domestic LPG remains 2.5 days."
Gas statistics
Gas consumption and production in India
Sharma also shared details about India's gas consumption and production. She said the total gas consumption is 189 million metric standard cubic meters per day (mmscmd), with 97.5 mmscmd produced domestically and the rest imported. However, she noted that supply has been affected due to force majeure conditions to the tune of 47.4 mmscmd.
Supply disruption
Qatar halts gas production amid Iran-Israel conflict
The concerns stem from Qatar's decision to halt production after Iran attacked Gulf nations in retaliation for Israeli and US strikes. As India's top liquefied natural gas supplier, the move has sparked fears of potential impacts on domestic fuel supplies. To tackle this crisis, India has invoked emergency powers and directed refiners to ramp up LPG production to avoid shortages of this essential cooking fuel.
Supply measures
Alternative procurement routes being explored to secure supplies
Sharma also revealed that alternative procurement routes are being explored to secure supplies, as India imports 60% of its requirement with 90% through the Strait of Hormuz. She said domestic LPG production has rose by 25% and is being directed to household consumers after government intervention to boost output. India's Oil Minister Hardeep Singh Puri also assured there was no shortage of LPG for households amid panic buying reports.