JD - India is actively exploring alternative sources for crude oil, liquefied petroleum gas (LPG), and liquefied natural gas (LNG) imports, government sources revealed Tuesday, in anticipation of a potentially prolonged conflict in the Middle East. The disruption could last for 10 to 15 days.
Shipping traffic through the Strait of Hormuz, a critical waterway between Iran and Oman responsible for transporting approximately one-fifth of the world's oil consumption and significant gas volumes, has been severely hampered. This follows attacks on vessels in the region, which are reportedly a response to U.S. and Israeli strikes.
The Indian government is closely monitoring the situation and remains confident that alternative sources will be secured if any existing supply routes are blocked. "We are fairly confident that if one source is closed, another source will be opened," the source told reporters.
Indian refineries process approximately 5.6 million barrels of crude oil daily, with about 40% of these imports passing through the Strait of Hormuz. India maintains sufficient crude oil reserves to meet demand for roughly 25 days. Refineries also hold reserves of gas oil, gasoline, and LPG, sufficient for the same period.
The situation is more precarious concerning natural gas supplies. India has only a few days of LNG reserves remaining after Qatar, its largest supplier, suspended production on Monday.
"If Qatar does not resume production in the next few days, we may have to look for alternatives and take additional measures," the source stated. Several Indian companies have already reduced gas supplies to some industrial clients, beginning Monday.
It remains unclear whether Indian refineries will increase their purchases of Russian oil. In recent months, Indian refining companies have reduced their Russian oil purchases to avoid potential punitive tariffs imposed and to facilitate a potential trade agreement with Washington.
