India Secures LNG Cargoes, Diversifies Crude Imports Amid Middle East Crisis

New Delhi, March 2026 : The Central government on Wednesday said two liquefied natural gas (LNG) cargoes are currently on their way to India to support domestic energy supplies, as public sector oil and gas companies ramp up imports from regions outside the Middle East following disruptions caused by the ongoing conflict involving Iran.

Officials said the government has taken several measures to ensure energy security and maintain stable supplies of crude oil, LPG, and natural gas for households and industries. The developments come amid concerns about supply disruptions in global energy markets due to escalating tensions in the Gulf region.

Addressing a press conference in New Delhi, Sujata Sharma said that crude oil supplies to India remain stable despite the ongoing geopolitical tensions.

“Crude supply remains secure. The volumes we have secured today exceed what normally would arrive through the Strait of Hormuz,” Sharma said.

She noted that India’s oil marketing companies have diversified procurement and secured crude shipments from multiple countries to reduce dependence on traditional supply routes. As a result, a larger share of India’s crude oil imports is now coming through alternative maritime routes.

“Nearly 75 per cent of our crude imports are currently arriving through routes other than the Strait of Hormuz, compared with around 55 per cent earlier,” Sharma explained.

The government also addressed concerns about panic booking of Liquefied Petroleum Gas cylinders following news of tensions in the Middle East. Sharma urged consumers not to rush into booking additional cylinders, assuring them that the supply chain for domestic LPG remains stable.

“The normal delivery cycle for domestic LPG remains around 2.5 days, so there is no need for customers to panic or make unnecessary bookings,” she said.

According to the official, the government is closely monitoring the evolving situation and has taken steps to secure alternative supply routes to meet India’s energy needs. India imports around 60 per cent of its natural gas requirements, making it essential to maintain diversified sourcing.

Sharma said domestic production of LPG has been increased significantly to support household consumption. “Domestic LPG production has risen by about 25 per cent and is being directed primarily toward household consumers,” she said.

The government has also asked refineries to maximise output to ensure adequate fuel availability. Sharma said many of the country’s refineries are currently operating at very high capacity levels.

“Our refineries are operating at the highest capacity utilisation, and some units are even operating at more than 100 per cent of their designed capacity,” she said.

India’s total gas consumption currently stands at around 189 million metric standard cubic metres per day (mmscmd). Of this, about 97.5 mmscmd is produced domestically, while the remaining volume is imported from international suppliers.

However, Sharma acknowledged that part of the supply has been affected due to force majeure conditions triggered by the ongoing conflict in the region.

“Approximately 47.4 mmscmd of supply has been affected due to force majeure conditions arising from the Iran conflict,” she said.

Concerns about possible shortages intensified after Qatar, India’s largest supplier of LNG, temporarily paused production following attacks linked to the conflict.

Despite these developments, Hardeep Singh Puri assured consumers earlier that there is no shortage of LPG for household kitchens across the country.

To further safeguard energy supplies, the government has invoked provisions under the Essential Commodities Act to prioritise distribution of key fuels.

Under the order issued on Tuesday, priority will be given to supplies of piped natural gas for households, compressed natural gas (CNG) for transportation, and LPG production. The order ensures that essential sectors receive up to 100 per cent of their average gas consumption over the past six months, subject to operational availability.

The directive also covers natural gas requirements for pipeline compressor operations and other essential infrastructure functions to ensure uninterrupted delivery of energy.

In addition, the Centre has instructed refineries and petrochemical plants to maximise production of LPG and divert key hydrocarbon streams toward the LPG pool to maintain adequate supply for domestic consumption.

Officials said the government will continue to monitor the global energy situation closely and take further steps if necessary to ensure that fuel supplies for households and essential services remain uninterrupted despite the ongoing geopolitical crisis.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)