India is currently prioritising natural gas to maintain fertiliser production, which is essential for the agriculture sector. Domestic stocks of natural gas, with arrangements being made to procure the LNG from Australia and Canada. The government will re-prioritise the allocation of fertilisers and city gas distribution to ensure uninterrupted supplies.
The shutdown of LPG production by Qatar has threatened 60 million standard cubic meters per day (MSCMD) of India’s consumption of 195 (MSCMD). India imports natural gas from Qatar, accounting for 40-42% of its requirements.
Top government sources said that India is in touch with the International Energy Agency (IEA) and OPEC regarding the West Asian scenario. Besides, it is also negotiating with the US, Australia, and Canada for LNG supplies.
One of the sources said ‘ We are in a comfortable position with LNG and LPG. We are also in touch with many traders to purchase LNG and LPG, including Sontarch Petroleum, ADNOC, Trafigura, Vitol, and national oil companies.
Rationing of LNG supplies, sources said, at present the situation is comfortable, but supplies can be re-prioritised if bottlenecks in the Strait of Hormuz persist. GAIL announced that supplies from Qatar must be halted, and it is assessing whether to curtail supplies to select customers.
Also read: Russia Boosts Oil Supply to India as Conflicts Disrupt
India imports more than half of its LPG consumption from West Asia, accounting 90% of total imports. A source explained that LPG from the US has started coming to India in January, and we are also buying from Norway. Aside from that, we have sufficient refining capacity and ample crude supplies, allowing refiners to produce more LPG.
