Government Confirms Two LNG Shipments En Route to Alleviate Gas Shortage Concerns

India Government Aims to Mitigate LNG Shortage Fears

On March 11, the Indian government announced that two liquefied natural gas (LNG) cargoes are en route to the country. This move comes as India faces gas shortage fears triggered by Qatar's decision to halt production following the recent escalation of tensions in the Gulf region.

Key Statistics:

• 75% of crude oil coming from routes other than the Strait of Hormuz, up from 55% earlier
• 189 mmscmd total gas consumption, with 97.5 mmscmd produced domestically and the rest imported
• 47.4 mmscmd supply affected due to force majeure conditions
• 25% increase in domestic LPG production

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The government is taking proactive measures to ensure energy security, with refineries operating at their highest capacity utilization. Some refineries are even operating at more than 100% of their capacity. The government has invoked emergency powers to direct refiners to maximize LPG production and prevent a shortage of the essential cooking fuel.

Mitigation Efforts:

• Procurement through alternative routes is underway to secure LNG supplies
• 90% of India's LPG imports come through the Strait of Hormuz, while 60% of the country's requirement is met through imports
• Domestic LPG production has increased, with 90% of the additional output being directed to household consumers