- The US is now the largest LPG supplier to India after the Middle East crisis, Union minister Hardeep Puri said
- India also increased domestic LPG production to offset reduced Gulf imports
- The US accounts for 67% of India's LPG imports, Puri said
The US has become the largest supplier of LPG to India following the disruption caused by the Middle East crisis and the subsequent closure of the critical waterway Strait of Hormuz, Union Oil Minister Hardeep Singh Puri said today.
India has also increased domestic LPG production to offset lower imports from Gulf suppliers, Puri said.
"Today, I am happy to inform you that the United States accounts for something like 67 per cent of our LPG imports," he said at an event organised by the Confederation of Indian Industry (CII).
With measures like diversified sourcing, expanded refining capacity and higher domestic production, India successfully shielded consumers from any supply disruption as a result of the Middle East crisis, the Union minister said.
"Today, I think we are in the happy situation of being able to say that, as far as India is concerned, we have moved on from that," he said, referring to India changing its views on energy security, from seeing only hydrocarbon access earlier to diversified imports, strategic partnerships, infrastructure expansion and alternative fuels now.
Before the war began in the Middle East, India imported as much as half of its crude oil from countries using the strait as a transit. At least 90 per cent of cooking gas (LPG) and 60 per cent of other gas imports passed through the waterway.
While these supplies were disrupted, India quickly diversified its sources to prevent shortage anywhere in the country, the oil minister said. "I can say with a degree of confidence, not one station went dry, not one," he added, referring to the network of more than 1.07 lakh fuel retail outlets. There were 52,000 such outlets in 2014.
India also expanded its crude supply sources from 27 to 41 countries and broadened city gas distribution coverage from 55 geographical areas to 309. "We never ran short of crude oil supplies. We always had about 60 days (cover); there was no shortage."
Beyond the immediate supply security, Puri highlighted the government's recently approved Rs 84,000 crore Samudra Manthan programme aimed at supporting deepwater oil and gas exploration.
"The government is not going to do the drilling. The drilling is going to be done by private players," he said. The government will support up to 50 per cent of drilling costs or up to Rs 650 crore per well to encourage investment in high-risk offshore exploration.
