India is now turning to Africa to meet its LPG needs. Due to tension and blockages in the Strait of Hormuz, supplies coming from Gulf countries have been affected. To deal with this crisis, the Indian government has strengthened its partnership with countries like Nigeria and Algeria so that there is no shortage of gas in the country.
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How has the tension in the Strait of Hormuz affected India?
Due to the ongoing conflict in Iran and surrounding areas, trade through the Strait of Hormuz has been affected. India sources about 80 to 90 percent of its LPG requirement through this route. Due to this route being unsafe, there has been a problem in the supply chain. According to the report, India’s imports are expected to decline by about 46 percent by March 2026. For this reason, the government has now focused on alternative routes and increasing trade relations with new countries.
What steps has the government taken to maintain gas supply?
The government has emphasized on increasing domestic production and new international agreements. For this, many important steps have been taken which can provide relief in future:
Big deal from Nigeria: An agreement has been signed between Nigerian National Petroleum Company (NNPCL) and Indian Oil Company (IOC) for supply of 50 lakh metric tons of LPG.
Increase in Domestic Production: Domestic LPG production in India has been increased by about 20 percent to reduce external dependence.
New partner countries: Australia has offered to supply additional gas and a long-term agreement has also been signed with Canada.
Safety measures: The Indian Navy is ensuring the safety of cargo ships through Operation Sankalp.
Use of option: Houses which have piped gas (PNG) are being asked to use the same instead of LPG cylinders.
Major gas supplying countries and latest situation
Country Name Type of Cooperation Latest Update Nigeria Huge increase in LPG trade Target of 50 lakh metric tonnes Australia Additional gas supply New proposal received Canada Strategic Energy Partnership Long Term Supply Agreement Iran Direct Purchase Recently a cargo was ordered America Increase in imports Supply increased from Gulf Coast
The Indian Ministry of External Affairs has confirmed that four LPG ships have safely reached India from the Strait of Hormuz. The government is coordinating with other countries so that the passage of ships remains safe. According to the Petroleum Ministry, there is currently sufficient stock of petrol, diesel and gas in the country and the refineries are working at full capacity. The government has also implemented strict rules to prevent hoarding.
