India has expanded the number of countries from which it sources liquefied natural gas (LNG) from six to 15, in a move aimed at reducing the risk of supply disruptions caused by geopolitical tensions and maritime transit challenges, the government informed the Rajya Sabha on Monday.
The country has also diversified its crude oil sourcing base, increasing the number of supplier countries from 27 to 41. The government said the broader sourcing network would reduce dependence on any particular country, region or transit route and strengthen India’s ability to deal with disruptions and volatility in global energy markets.
Minister of State for Petroleum and Natural Gas Suresh Gopi said the government continuously monitors global supply conditions in consultation with public-sector 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 in its reply.
The expansion of India’s LNG sourcing network comes against the backdrop of heightened geopolitical uncertainty and disruptions to energy shipments through key maritime routes. LNG supplies can be particularly vulnerable to disruptions because of their dependence on shipping and international energy markets.
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The government has also been working to strengthen the country’s strategic petroleum reserves as a buffer against potential supply shocks.
Indian Strategic Petroleum Reserve Limited currently operates three strategic petroleum reserve facilities in Andhra Pradesh and Karnataka, with a combined capacity of 5.33 million metric tonnes of crude oil.
In addition, the government has approved two commercial-cum-strategic petroleum reserve facilities with a combined capacity of 6.5 million metric tonnes in Odisha and Karnataka. The projects, located at Chandikhol in Odisha and Padur in Karnataka, were approved in July 2021.
However, the additional 6.5-million-tonne capacity is not currently available for use. The latest government reply did not provide details on the construction progress, completion timelines or expected commissioning dates of the two facilities.
Separately, Oil and Natural Gas Corporation is developing a strategic petroleum reserve facility with a capacity of 1.75 million metric tonnes in Karnataka. According to an earlier Rajya Sabha reply, half of this capacity will be reserved for strategic storage, while the remaining half will be available to ONGC for commercial operations.
The government’s latest disclosures highlight India’s broader strategy of diversifying energy suppliers and expanding storage capacity to improve resilience against geopolitical disruptions and fluctuations in global energy markets.
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