India is unlikely to see any major disruption in gas consumption after Qatar declared force majeure on some LNG supplies to the country, as alternative supply options are available, said a petroleum ministry official on Thursday. According to the official, if there is any impact, the government may re-prioritise gas supplies in the country, especially for commercial consumers. However, city gas distribution (CGD) players dealing in PNG, or CNG are expected to remain largely unaffected.
“Supplies from alternate sources are being arranged to fill the gap… even if the gas is reduced to commercial users, these entities will have alternate sources to manage,” the official said.
The official added that the country will prioritise gas supply for critical sectors, especially fertiliser plants ahead of the upcoming sowing season, as well as cooking gas distribution and power generation.
Qatar supplies about 40% of the 27 million tonnes of LNG that India imports annually. The country has halted liquefied natural gas (LNG) production after its facilities came under attack due to the ongoing conflict between Iran and Israel. The official added that the country is also in talks with companies including Algeria’s Sonatrach Petroleum and Abu Dhabi National Oil Co, as well as traders such as Total, Vitol, and Trafigura, for oil and gas supplies.
LNG shipments through the Strait of Hormuz — a critical global energy chokepoint — have reportedly been suspended since February 28.
The government said India is in a comfortable position regarding fuel supply. The country is in talks with all major suppliers, as well as organisations such as OPEC and the IEA, to ensure smooth crude supply. “We have sufficient supply of crude and LPG in the country. Moreover, along with the stock of crude in the country and with the oil marketing companies, the stock has been replenished with other suppliers,” the official said. India has already increased imports of oil and cooking fuel LPG from the United States.
The official also mentioned that the country has held talks with the US to seek clarity on a proposed mechanism to provide insurance for oil tankers and other vessels transiting the Strait of Hormuz.