India expands LNG sourcing from 6 to 15 countries to cut supply risks: Govt

India has nearly trebled the number of countries it sources liquefied natural gas (LNG) from, expanding the supplier base from six to 15 as it seeks to cushion energy supplies against geopolitical tensions and disruptions along key maritime routes, the government told the Rajya Sabha on Monday.

The country has also broadened its crude oil sourcing network, with imports now coming from 41 countries compared with 27 earlier, the Ministry of Petroleum and Natural Gas said in a written reply to Parliament.

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Minister of State for Petroleum and Natural Gas Suresh Gopi said the wider sourcing network was aimed at reducing India's exposure to disruptions from any single supplier, region or transit route.

“This diversification has reduced dependence on any particular country, region or transit route and enhanced India's ability to manage supply disruptions and market volatility,” Gopi said.

India spreads its energy bets

The expansion of LNG sourcing from six to 15 countries is the latest disclosure from the government on its efforts to diversify energy supplies. The increase in the number of crude oil suppliers to 41 countries had been disclosed earlier, particularly amid disruptions to energy shipments through West Asia.

The ministry said it regularly monitors risks to energy supplies and assesses global market conditions in coordination with public-sector oil and gas companies and other stakeholders.

The government said it takes measures as required to ensure the uninterrupted availability of crude oil, LNG and petroleum products.

India is heavily dependent on imports to meet its energy requirements, making the resilience of supply chains and access to multiple sources particularly important during geopolitical disruptions and periods of volatility in global energy markets.

India expands strategic oil reserves

Alongside diversifying suppliers, the government is also expanding its strategic petroleum storage capacity to strengthen the country's ability to deal with supply shocks.

Indian Strategic Petroleum Reserve Ltd (ISPRL) has established three strategic petroleum reserve facilities with a combined capacity of 5.33 million metric tonnes (MMT) in Andhra Pradesh and Karnataka.

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The government has additionally approved two commercial-cum-strategic petroleum reserve facilities with a combined capacity of 6.5 MMT in Odisha and Karnataka.

However, this additional 6.5 MMT capacity is not currently available for use. The projects at Chandikhol in Odisha and Padur in Karnataka were approved in July 2021. The latest parliamentary reply did not provide details on their construction progress, completion timelines or expected commissioning dates.

ONGC building another reserve

Oil and Natural Gas Corporation (ONGC) is separately developing a 1.75 MMT strategic petroleum reserve facility in Karnataka.

In a Rajya Sabha reply on August 3, the government said half of the facility's capacity would be earmarked for strategic storage, while the remaining half would be available to ONGC for commercial operations.

The expansion of both supplier networks and storage capacity comes as India seeks to build greater resilience against geopolitical shocks, maritime transit disruptions and sudden swings in international energy markets.

(With inputs from ANI)