West Asia battle: India has 2–3 weeks of LNG Reserves, comfortably positioned on LPG, say oil ministry sources
Amid the escalating battle in West Asia and rising international issues over provide chain disruptions, India maintains a buffer of two to 3 weeks of LNG reserves, a high official from the Ministry of Petroleum and Pure Gasoline advised Enterprise In the present day. Moreover, the Indian authorities is comfortably positioned with its LPG (Liquefied Petroleum Gasoline) provide chains, one other supply advised Enterprise In the present day, citing a diversified sourcing technique.
“We as a rustic stay comfortably positioned relating to power provides regardless of the intensifying battle in West Asia and a halt in manufacturing at key Qatari Liquefied Pure Gasoline (LNG) services. We’re constantly monitoring the scenario,” a high official aware of the matter advised Enterprise In the present day.
This comes as international power markets react to a dramatic escalation within the West Asia battle. On Monday, following regional drone strikes, QatarEnergy introduced an instantaneous halt in manufacturing at its main services in Ras Laffan and Mesaieed. As one of many world’s main LNG exporters, this sudden disruption has pushed up worldwide fuel costs, inserting strain on importing nations throughout Asia and Europe.
The event follows New Delhi’s evaluation of the influence of a direct navy confrontation between a US-Israeli coalition and Iran. The battle, which shifted from a shadow struggle to open engagement after the launch of ‘Operation Epic Fury’ on February 28, has disrupted regional transport and triggered strikes on power infrastructure.
Strait of Hormuz and International power stakes
On the centre of present issues is the Strait of Hormuz, a slender waterway typically described because the world’s power “jugular vein.” Connecting the Persian Gulf to the Arabian Sea, the strait handles almost 20% of worldwide oil consumption and a major share of seaborne LNG. India sources roughly 40% of its crude oil imports by way of the Strait of Hormuz, whereas the remaining 60% comes from different routes and suppliers, a senior authorities official advised Enterprise In the present day on situation of anonymity.
Whereas the federal government stays assured about its reserves and diversified provide chains, analysts monitoring the power sector warning that LPG and LNG might show extra delicate than crude oil. Not like crude, which will be saved in giant underground caverns, pure fuel requires specialised high-pressure storage infrastructure, limiting the length of obtainable buffers.
The continued battle, which intensified over the weekend with direct navy strikes involving Iran, the US, and Israel, has disrupted routine tanker motion by way of the area. Iranian authorities have indicated a possible closure of the strait, leading to a spike in maritime insurance coverage premiums and prompting a number of industrial vessels to keep away from the route.
Analysts warn that if instability persists, the geopolitical threat premium embedded in power costs might stay elevated. Whereas India’s present inventories supply safety in opposition to fast shocks, the longer-term financial influence — together with potential strain on inflation, the rupee, and import payments — will depend upon how shortly regional manufacturing and transport routes stabilise.
