1 hr ago
West Asia Crisis Prompts Calls for India Energy Diversification
India gets a large share of its energy from other countries.
Much of its imported oil comes from Gulf countries.
Experts worry that problems in West Asia could make these supplies harder to move.
They say India should buy energy from more places and use more transportation routes.
India could also store more oil for emergencies.
Some oil could be rerouted through the Mediterranean or handled through trading arrangements.
The United States, Australia and Africa could provide more liquefied natural gas.
However, these alternatives may cost more and may not be available in large enough amounts.
Experts also say India needs stronger security and more domestic and renewable energy.
India’s primary-energy import dependence was about 42% in 2024-25, while crude-oil dependence was about 89%.
India imported around 1.8 billion barrels of crude oil in 2025, with about 48% coming from the Gulf region.
Experts urged India to diversify suppliers, transportation routes, strategic reserves, LNG sources and domestic energy production.
Potential alternatives include Mediterranean rerouting, spot cargoes, swaps, and infrastructure in the United Arab Emirates and Oman.
Experts warned that rerouting could face limited volumes, higher costs, longer voyages, security risks and continued Strait of Hormuz exposure.
- Who
- India and energy experts, including Rajeev Agarwal, Cauvery Ganapathy and Mannat Jaspal.
- What
- Experts are urging India to diversify its oil and gas suppliers, transport routes, storage capacity and energy sources.
- Where
- The risks concern energy supplies moving from the Gulf and through West Asia, including routes linked to the Strait of Hormuz.
- When
- India’s import-dependence figures cited cover 2024-25, while its crude-import figure covers 2025.
- Why
- India relies heavily on imported energy and Gulf supplies, leaving it exposed to regional disruptions, higher transport costs and security risks.
Diversify Routes and Supplies
Account for Limits and Costs
Alternative energy routes
Diversify Routes and Supplies
India could use Mediterranean rerouting, cargoes already at sea, spot trading, swaps, and facilities in the United Arab Emirates and Oman.
Account for Limits and Costs
Available volumes may be limited, alternatives may face competition, and Gulf-origin oil and gas could still be exposed to the Strait of Hormuz before reaching alternative facilities.
Replacing Gulf supplies
Diversify Routes and Supplies
Diversifying LNG sources, increasing strategic and commercial inventories, and expanding domestic gas and renewable energy could strengthen India’s energy security.
Account for Limits and Costs
Replacing Gulf supplies could involve higher risk premiums, longer voyages, increased costs, and additional security requirements, while LPG remains difficult to shift through pipelines.
Key facts
- Overall primary-energy import dependence
- About 42% in 2024-25
- Crude-oil import dependence
- About 89%
- Natural-gas import dependence
- Nearly 49%
- Crude imported in 2025
- Around 1.8 billion barrels
- Gulf share of 2025 crude imports
- Approximately 48%
- Potential UAE storage capacity in India
- Up to 30 million barrels
- Suggested LNG sources
- The United States, Australia and Africa
Quotes
Cauvery Ganapathy
Climate and energy fellow at the Observer Research Foundation Middle East
“The re-routing and sourcing from other countries come with their own set of concerns such as high risk premiums, higher voyage time, which can be expected to have a direct bearing on the affordability element.”
businesstoday.in
“The announcement that the UAE will be increasing its crude oil storage capacity in India by almost six times the current volume is a case in point.”
businesstoday.in
Sources
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