{"id":14571,"date":"2025-06-24T07:01:09","date_gmt":"2025-06-24T07:01:09","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=14571"},"modified":"2025-06-24T07:01:09","modified_gmt":"2025-06-24T07:01:09","slug":"half-of-indias-lng-imports-come-from-qatar-and-uae-relying-on-strait-of-hormuz-for-supplies","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/14571\/","title":{"rendered":"Half of India\u2019s LNG imports come from Qatar and UAE, relying on Strait of Hormuz for supplies"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Half of India\u2018s total natural gas requirement is met via imports that come through the Strait of Hormuz \u2013 supplied by Qatar and the UAE \u2013 and thus stands exposed to a higher risk of disruption, according to experts who track movement of energy supplies.<\/p>\n

Out of this total import, over 50 percent is supplied by the two Gulf nations that ship LNG to India via the Strait of Hormuz route. Qatar \u2013 India\u2019s largest LNG supplier \u2013 exports around 11.4 million metric tonnes (mmt) of LNG, which is over 40 percent of New Delhi\u2019s total annual import. A closure of the shipping lines of the Strait of Hormuz poses a critical threat to these exports, as nearly all of Qatar\u2019s outbound cargoes transit the strait to reach Asian markets, said Harshraj Aggarwal, analyst at Yes Securities.<\/p>\n

\u201cWhile no shipments have been disrupted so far, QatarEnergy has instructed tankers to delay Gulf entry until just before loading, reflecting heightened risk perceptions. For India, any prolonged disruption could lead to supply delays, higher spot reliance, and upward pressure on LNG prices, directly impacting Petronet LNG\u2019s portfolio economics,\u201d Aggarwal added. India\u2019s state-run gas major Petronet LNG has a long-term contract with QatarEnergy for supplying 7.5 million tonnes per annum of LNG until 2048.<\/p>\n

Asian spot LNG prices have already jumped around 11 percent Week-on-Week (WoW) to $14 per mmbtu (million metric British thermal unit) on fears of disruption.<\/p>\n

To shield India from potential supply shock in the Middle East, New Delhi also sources LNG from countries that are logistically detached from the Gulf, including the US, Russia and Australia, among others.<\/p>\n

Risk of Costlier Freight<\/p>\n

Though energy supplies from the Middle East nations have remained largely undisrupted until now, freight costs for the India\u2019s energy companies have shot up. Oil Minister Hardeep Puri on June 22 said the government is closely monitoring the evolving geopolitical situation in the Middle East and would take all necessary steps to ensure stability of fuel supplies to Indian consumers.<\/p>\n

Middle East Conflict<\/p>\n

With Middle East nations being large energy suppliers to India, the escalation of the Iran-Israel conflict over the weekend poses serious risk for New Delhi. US President had bombed Iranian nuclear facilities on June 21, increasing risks for vital shipping routes in the region.<\/p>\n

India\u2019s critical energy supplies are at risk as it is not only a big consumer but also primarily reliant on imports of crude oil (around 90 percent) and liquified natural gas (around 50 percent).<\/p>\n

LPG: Another fuel at risk?<\/p>\n

Not only oil and gas, but New Delhi is also highly dependent on imports of liquefied petroleum gas (LPG), which is India\u2019s primary cooking fuel. The nation imports around 60 percent of its total LPG requirements. Data from global trade analytics firm Kpler says of the total LPG imports, India buys around 90 percent of the fuel from West Asian nations including UAE, Qatar, Kuwait and Saudi Arabia. The closure of the Strait of Hormuz would also cripple India\u2019s LPG supplies shipped by the Middle East nations through the route. India\u2019s LPG consumption have risen by 5.5 percent in FY24 from last year, government data showed.<\/p>\n

Oil vs Gas<\/p>\n

Though not immune, but India\u2019s natural gas import exposure via the Strait of Hormuz is lower than the risk to crude oil. This is on account of two reasons \u2013 India\u2019s higher reliance on imports for crude than LNG, and oil constituting a major share in the nation\u2019s total energy basket versus natural gas.<\/p>\n

According to Oil Ministry data, India is dependent on imports for nearly 90 percent of its crude oil supplies from countries such as Russia, Iraq, Saudi Arabia. In comparison, New Delhi imports around 50 percent of its natural gas requires.<\/p>\n

Secondly, in India\u2019s energy basket, oil and petroleum products form a significant portion \u2013 around 26 percent \u2013 as against natural gas\u2019 share of 6 percent. India\u2019s crude oil consumption too has continued to grow while the nation\u2019s appetite for natural gas has stayed stagnant. India crude oil imports rose to 5.64 million barrels per day (bpd) in 2024 as against around 5 million bpd in the previous year. The International Energy Agency (IEA) expects this to further grow to 6.66 million bpd by 2030, the agency said in a report earlier this month.<\/p>\n

India\u2019s gas consumption, on the other hand, is growing at a slow pace. Domestic gas consumption grew only 7 percent in FY24 from last year, showed oil ministry data.<\/p>\n

Source : Moneycontrol<\/p>\n

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