Union Petroleum and Natural Gas Minister Hardeep Singh Puri is on a two-day visit to Qatar today and tomorrow amid concerns over energy supplies triggered by the Iran war.
Why his visit matters
India imports 50 per cent of its LNG stocks from the international market, oil economist Kirit Parikh said. Out of this, 40 per cent stocks are sourced from Qatar. However, much of India's imports have been severely disrupted due to the closure of major natural gas production plants by the Qatari government and the disruption of the Strait of Hormuz.
Amid the disruptions, the Indian government has begun large-scale imports of natural gas from new markets and routes - reportedly mainly from the US, Australia, and Russia for LNG.
Iranian strikes on Qatar since the outbreak of the conflict in late February have damaged infrastructure, accounting for nearly 17 per cent of the country's LNG export capacity, according to QatarEnergy CEO Saad al-Kaabi. The attacks on two of Qatar's 14 LNG trains and one of its two gas-to-liquids (GTL) facilities have taken offline an estimated 12.8 million tonnes per annum of LNG output. The repairs could reportedly take between three and five years.
The disruption is estimated to cost Qatar about $20 billion in annual revenue losses and has raised concerns over global energy security, particularly among key importers in Europe and Asia.
Puri is likely to discuss liquefied natural gas (LNG) supplies during his visit, reported news agency IANS.
LPG concerns
There have been concerns over the LPG supply shortage in India after Iran blocked the Strait of Hormuz passage - chokepoint that carries around a fifth of the world's oil supply. However, the Ministry of Petroleum has maintained that the LPG cylinder supply in the country is "operating normally".
"LPG supplies are being affected due to the current geopolitical situation. However, LPG distributors have not reported any shortages. Online LPG bookings across the industry have increased by approximately 95 per cent. Delivery Authentication Code (DAC)-based deliveries have increased by approximately 91 per cent to prevent diversion," the ministry said in a statement.
It added that the domestic LPG cylinder deliveries also remain normal.
"Over 5.35 million domestic LPG cylinders were delivered on April 7," it said.
S Jaishankar in UAE
External Affairs Minister (EAM) S Jaishankar will be travelling to the UAE this week, the first such visit by an Indian minister since the beginning of the Iran war and the Middle East crisis, sources said.
According to sources, Jaishankar will visit Mauritius and the UAE between April 9 and April 12. He will first visit Mauritius for the Indian Ocean Conference (IOC), and then the UAE, sources said, adding that energy security is at the top of the agenda.
The announcement of his travel came hours after the US and Iran agreed to a two-week ceasefire, with President Donald Trump accepting Tehran's 10-point conditions and calling them "workable". However, despite the ceasefire, strikes continued, and the traffic through Hormuz remained extremely limited.
