NEW DELHI: With energy supplies remaining tight due to the ongoing conflict in West Asia, India is actively securing liquefied petroleum gas (LPG) cargo through spot purchases to meet the demand for cooking gas cylinders among households and commercial establishments.
People aware of the development said state-run oil marketing companies (OMCs) have tied up with the United States to bridge the supply shortfall. In addition to long-term contracts with the country, OMCs have also added spot cargoes in the last few weeks, which are expected to reach India in June and July.
Government's Priority on Domestic Supplies
When asked, Sujata Sharma, joint secretary in the petroleum and natural gas ministry, said India was importing nearly 60% of its LPG requirement before the war broke out in West Asia. "With the increase in domestic production, our import dependency has decreased. The government's priority is to ensure domestic supplies, and for that, we will source cargo from wherever it is possible," Sharma stated.
According to the ministry, against a daily LPG requirement of approximately 80,000 tonnes, India has raised domestic output by nearly 20% to about 46,000 tonnes. For the remaining requirement, it has diversified imports from 10 countries earlier to 15 now. While 90% of LPG supplies earlier came from Gulf nations such as the UAE, Qatar, Saudi Arabia, Kuwait, Bahrain, and Oman, more purchases are now being made from the US, Norway, Canada, Algeria, and Russia.
Assured Imports and Vessel Arrivals
Earlier this month, the government said that at least eight lakh tonnes of assured import cargo had already been secured and are en route. Of the 10 vessels that have reached India after crossing the Strait of Hormuz since the war began and supply lines were choked, nine carried cooking gas.
