India broadens LNG, oil imports as maritime risks mount

India has significantly expanded the number of countries from which it sources liquefied natural gas (LNG) and crude oil as part of efforts to reduce exposure to geopolitical tensions and maritime transit disruptions.

The Ministry of Petroleum and Natural Gas said India has increased its LNG sourcing base from six countries to 15, while crude oil suppliers have risen from 27 countries to 41, ANI reports.

“This diversification has reduced dependence on any particular country, region or transit route and enhanced India’s ability to manage supply disruptions and market volatility,” Minister of State for Petroleum and Natural Gas Suresh Gopi said in a written reply to a parliamentary question.

The expansion of LNG sourcing represents a new disclosure, while the increase in crude oil suppliers had previously been announced amid disruptions to energy shipments through West Asia.

The ministry said it continuously monitors potential threats to energy supplies and evaluates global market conditions in coordination with state-owned oil and gas companies and other stakeholders.

“Government, in consultation with Public Sector Oil and Gas Companies and other stakeholders, continuously assesses global supply conditions and acts appropriately to ensure uninterrupted availability of crude oil, LNG and petroleum products,” the ministry said.

The government also outlined efforts to strengthen India’s strategic petroleum reserves. Indian Strategic Petroleum Reserve Limited has established three facilities in Andhra Pradesh and Karnataka with a combined capacity of 5.33 million metric tonnes of crude oil.

Two additional commercial-cum-strategic reserves, with a combined capacity of 6.5 million metric tonnes, have been approved in Odisha and Karnataka. However, this capacity is not yet available for use.

The Chandikhol facility in Odisha and Padur facility in Karnataka were approved in July 2021, though the latest government response did not provide updates on their construction progress or expected commissioning dates.

Separately, Oil and Natural Gas Corporation is developing a 1.75-million-tonne strategic petroleum reserve in Karnataka. Half of the capacity is expected to be designated for strategic storage, while the remainder will be available for ONGC’s commercial operations.

By Vafa Guliyeva