GoI has approved extra LPG allocation for commercial use as domestic production rises. States will now receive half of their regular requirement of cooking gas used in eateries and restaurants that have struggled for fuel since the US-Israel war against Iran began. GoI had invoked emergency powers to direct refiners to maximise LPG output shortly after hostilities broke out.
This supply is coming on stream. Apart from domestic output, LPG vessels, including from the Persian Gulf, have delivered cargoes. India is also increasing gas imports from Russia and shipments are expected next month. The US is another source for import diversification in the stated Indian strategy of seeking energy from all available sources.
Also Read: Strait of Hormuz disruption could hit India's LPG supplies, refined product markets more vulnerable than crude oil markets: Report
The domestic LPG supply chain is being monitored for hoarding and diversion. GoI is using the crisis to nudge users towards piped gas, whose supply is less vulnerable to disruption and distribution is easier to monitor. City gas grids have been told to fast-track commercial connections, and eateries have been asked to explore alternative energy sources such as electricity. Improving supplies should lessen queues at LPG dealerships, which are in the headlines and are contributing to a bunching up of demand.
There is no global alternative to the Persian Gulf for natural gas. The rest of the world doesn't have enough reserves. Yet, a temporary disruption to supply from West Asia is manageable. Russia is sitting on gas that Europe has stopped buying after the Ukraine war. The Trump regime has a stated goal of ramping up its energy exports, including gas.
Also Read: Govt directs faster processing of city gas projects, hikes commercial LPG allocation to ease supply stress
Price of natural gas will remain elevated as countries like India negotiate in the spot market. Securing a steady supply won't be too difficult for countries so long as they shell out more for gas and for shipping it.
Shortage felt by commercial consumers of LPG should ease in the next few weeks, which also appears to be the likely duration of the conflict in West Asia. Residual disruption after a cessation of hostilities will be easier to manage.
This supply is coming on stream. Apart from domestic output, LPG vessels, including from the Persian Gulf, have delivered cargoes. India is also increasing gas imports from Russia and shipments are expected next month. The US is another source for import diversification in the stated Indian strategy of seeking energy from all available sources.
Also Read: Strait of Hormuz disruption could hit India's LPG supplies, refined product markets more vulnerable than crude oil markets: Report
The domestic LPG supply chain is being monitored for hoarding and diversion. GoI is using the crisis to nudge users towards piped gas, whose supply is less vulnerable to disruption and distribution is easier to monitor. City gas grids have been told to fast-track commercial connections, and eateries have been asked to explore alternative energy sources such as electricity. Improving supplies should lessen queues at LPG dealerships, which are in the headlines and are contributing to a bunching up of demand.
There is no global alternative to the Persian Gulf for natural gas. The rest of the world doesn't have enough reserves. Yet, a temporary disruption to supply from West Asia is manageable. Russia is sitting on gas that Europe has stopped buying after the Ukraine war. The Trump regime has a stated goal of ramping up its energy exports, including gas.
Also Read: Govt directs faster processing of city gas projects, hikes commercial LPG allocation to ease supply stress
Price of natural gas will remain elevated as countries like India negotiate in the spot market. Securing a steady supply won't be too difficult for countries so long as they shell out more for gas and for shipping it.
Shortage felt by commercial consumers of LPG should ease in the next few weeks, which also appears to be the likely duration of the conflict in West Asia. Residual disruption after a cessation of hostilities will be easier to manage.
