India is scouting for alternative sources for importing crude oil, liquefied petroleum gas and liquefied natural gas to prepare itself if the conflict in the Middle East lasts for more than 10-15 days, a government source said on Tuesday.
Shipping through the Strait of Hormuz between Iran and Oman, which carries around a fifth of oil consumed globally as well as large quantities of gas, has ground to a near halt after vessels in the area were struck as Iran hit back after US and Israeli strikes.
The government is continuously monitoring the situation and is “reasonably confident that if one source closes, another window will open”, the source told reporters.
Indian refiners process about 5.6 million barrels per day of crude, with about 40% of their crude imports passing through the Strait of Hormuz, he said.
The South Asian nation holds sufficient crude inventories to meet demand for about 25 days. Also, refiners hold 25-day inventory of gasoil, gasoline and liquefied petroleum gas, he said.
However, the position is tighter for natural gas. India has only a few days of LNG supplies left after its largest supplier, Qatar halted LNG production on Monday.
“If Qatar doesn’t open in the next few days, then we may have to scout for alternatives and take additional measures,” he said.
Indian companies have already reduced gas supplies to some industrial customers from Monday.
The source did not mention whether Indian refiners would increase purchases of Russian oil.
In recent months, Indian refiners curtailed purchases of Russian oil to avoid punitive tariffs imposed by President Donald Trump and help New Delhi clinch an interim trade deal with Washington.
