India has diversified crude oil and natural gas purchases to fill the gap caused by disruptions in the Strait of Hormuz, while prioritizing LPG and LNG supplies to ensure retail consumers and critical sectors are not affected, officials said. “Energy supply has definitely improved and we are in a much better position than a month ago,” said Sujata Sharma, joint secretary at the petroleum ministry.
India imports 5.5-5.6 million barrels of crude oil per day; before the conflict, 40-45% came through the strait. For LPG, about 60% of India’s annual demand of 31 million tons is met through imports, of which 90% is transported through the strait. Natural gas consumption is 191 mmscmd, of which 51% is imported and about 60% comes from West Asia.
Another official said India is seeking LPG from the United States, Russia, Canada, Norway and West African countries such as Nigeria, Algeria and Angola, as well as LNG from countries such as Cameroon, Equatorial Guinea and Mozambique. Goods have already been purchased from some sources, while negotiations with others are at an advanced stage.
Officials say imports from Africa are growing steadily, although West Asia still dominates. Over the past decade, India has diversified its crude oil purchases from 27 to 41 countries, reducing its dependence on the strait from 45% to about 30%.
Sharma said there are adequate stocks of petroleum products and LPG. Due to panic booking, domestic cylinder delivery time has been extended to 4-5 days, but no reports of drying up have been received and delivery times are expected to be relaxed soon.