India expands LNG and crude oil sourcing to mitigate supply risks

India has expanded its liquefied natural gas (LNG) sourcing from six countries to 15 to mitigate risks associated with geopolitical tensions and maritime transit challenges. This move was disclosed by the Ministry of Petroleum and Natural Gas in a written reply to the Rajya Sabha.

In addition to LNG, the government has widened its crude oil sourcing portfolio from 27 to 41 countries. Minister of State for Petroleum and Natural Gas Suresh Gopi stated that this diversification aims to reduce dependence on specific regions or transit routes, enhancing the nation's ability to manage market volatility and supply disruptions.

The government is also working to increase strategic petroleum storage capacity. Indian Strategic Petroleum Reserve Limited has established three facilities in Andhra Pradesh and Karnataka with a combined capacity of 5.33 million metric tonnes. Furthermore, two commercial-cum-strategic facilities in Odisha and Karnataka, with a combined capacity of 6.5 million metric tonnes, were approved in 2021, though their current construction progress was not specified. The Oil and Natural Gas Corporation is also developing a 1.75 million metric tonne facility in Karnataka.