3 weeks ago
India doubles LNG sourcing to 15 nations amid supply risks
India needs lots of energy, like gas and oil, to keep its cars, factories and homes running.
Much of this energy is bought from other countries.
It used to buy fuel from just a few countries.
Now India buys liquefied natural gas, called LNG, from 15 countries instead of only six.
It also buys crude oil from 41 countries instead of 27.
Buying from many different countries is safer for India.
If one country has problems or a shipment is delayed, India can still get fuel from other places.
India is also building big underground storage tanks to hold extra oil.
These tanks can be used in an emergency, such as when prices suddenly go up or supplies are interrupted.
Having many sources and stored fuel helps keep India's energy supply steady even when the world is uncertain.
India has expanded its LNG import sources from six to 15 countries.
Crude oil supplier countries have increased from 27 to 41, the government said.
The diversification aims to reduce dependence on any single supplier, region or maritime transit route amid the West Asia crisis.
ISPRL operates three strategic crude oil storage facilities in Andhra Pradesh and Karnataka with 5.33 MMT combined capacity.
Two commercial-cum-strategic reserve projects at Chandikhol and Padur, approved in July 2021, will add 6.5 MMT, while ONGC is building a 1.75 MMT reserve.
- Who
- The Government of India, via the Ministry of Petroleum and Natural Gas, disclosed by Minister of State Suresh Gopi
- What
- Expanded LNG import sources from six to 15 countries and crude oil sources from 27 to 41 countries, plus new strategic petroleum reserve projects
- Where
- India; new storage at Chandikhol (Odisha) and Padur (Karnataka), with existing facilities in Andhra Pradesh and Karnataka
- When
- Disclosed on Monday in a written reply to the Rajya Sabha
- Why
- To reduce dependence on any single supplier, region or maritime route and protect energy supplies from geopolitical tensions and shipping disruptions, including the West Asia crisis
Key facts
- LNG supplier countries
- Expanded from 6 to 15
- Crude oil supplier countries
- Expanded from 27 to 41
- Existing strategic storage capacity
- 5.33 MMT across three ISPRL facilities in Andhra Pradesh and Karnataka
- New approved reserve projects
- Chandikhol (Odisha) and Padur (Karnataka), adding 6.5 MMT; approved July 2021
- New capacity status
- Not currently available for use; no commissioning timeline provided
- ONGC strategic reserve
- 1.75 MMT in Karnataka, half reserved for strategic use
- Crude oil import dependence
- Over 85 per cent
- Announced by
- Minister of State Suresh Gopi in a Rajya Sabha written reply
Quotes
Minister of State for Petroleum and Natural Gas Suresh Gopi
Government minister overseeing petroleum and natural gas
“"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."”
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