LPG Shortage: The Indian Ministry of External Affairs has remarked that India would from buy Liquefied petroleum gas (LPG) from the United States and Liquefied natural gas (LNG) from Russia and Australia to plug supply gaps.
MEA Spokesperson Randhir Jaiswal remarked in a weekly press briefing that the Union Government is also ready to purchase LPG from Russia so it could meet the requirements of Indian residents.
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LPG Shortage-India’s Alternative Cargo Sources
For India, the United States of America has been a prominent supplier of LNG after Qatar. LNG imports of India stood in 224-25 at $2.46 billion from the United States, which was an increase of 74 percent in 2023-24 from $1.41 billion. However, US shipments involve higher costs and longer delivery times. Therefore, India is also contemplating the acquisition of LNG from Nigeria, Mozambique, Australia and Russia.
According to S&P Global Energy Data, it takes Russian cargo 15 days to deliver supplies to India, 17 days from Nigeria, 9 days from Australia and 7 days from Mozambique in comparison to 31 days from USA. On the other hand, cargoes from Qatar and UAE take 4 days to reach the country while delivery time is 3 days from Oman.
Sujata Sharma, Joint Secretary (Marketing and Oil Refinery), Ministry of Petroleum and Natural Gas, commented that approximately 90 percent of its LPG imports were previously routed via the Strait of Hormuz. The Joint Secretary added that India would pick up resources from a series of alternative sources to stabilize supply.
The Indian government is presently tapping on alternative routes such as LNG imports from Australia and the United States and additional sourcing from countries such as Canada.
Ras Laffan LNG Complex Supply Update
According to several traders, the supplies from Ras Laffan LNG complex of QatarEnergy to India may not be hit as Indian supplies originate from facility’s trains 2 and 3 that have not been hit.
