After the recent attacks on Iran by America and Israel, there is a new turmoil in the global market. This geopolitical tension has also affected the supply chain of LPG gas. News of shortage of LPG cylinders, especially commercial cylinders, has started emerging from many cities of India. This situation is a matter of concern for every family whose morning starts with making tea on the gas stove. In such a situation, it has become very important to understand how this war happening thousands of kilometers away is affecting our kitchen.
The world’s supplies pass through the Strait of Hormuz.
The root of this entire crisis is the Strait of Hormuz. This is an important and narrow passage of the sea, through which a large part of the world’s oil and gas passes. As soon as the attacks on Iran began, the movement through this important sea route was severely affected. From India’s perspective, this path is no less than a lifeline. About 85 to 90 percent of the total LPG imported into our country, which also includes the consignment coming from Saudi Arabia, passes through this Strait of Hormuz. When the threat to the safety of ships on this route increased, the speed of gas reaching India slowed down. As a result of this supply chain being disrupted, gas shortage is being felt at the local level today.
Who is the ‘king’ of LPG production?
Amidst this crisis, it is natural to raise the question that who is the biggest producer of this gas? In this matter America is the uncrowned king of the world. America has a huge refinery network and state-of-the-art technology, on the basis of which it fulfills the needs of a large part of the world.
First understand how LPG is made? Actually, it is not a natural gas coming out directly from the mine, but is a by-product released during refining of crude oil and processing of natural gas. When crude oil is cleaned in a refinery, many types of gases are released. Out of these, two gases named propane and butane are separated and by applying high pressure they are converted into liquid form. We call this liquid mixture Liquefied Petroleum Gas i.e. LPG.
Countries with the world’s 5 largest gas reserves
America may be at the forefront in production, but when it comes to the huge reserves of gas hidden under the ground, the picture is completely different:
- Russia: Russia is the richest country in the world in terms of natural gas reserves. Russia’s Siberia region alone (such as Urengoy and Yamburg) contains about 24 percent of the world’s gas reserves.
- Iran: Iran’s name comes at number two. The world’s largest offshore gas field (South Pars-North Dome) exists in the Persian Gulf between Qatar and Iran, half of which is under Iran’s control.
- Qatar: In third place is Qatar, which is also the world’s largest exporter of Liquefied Natural Gas (LNG) on the basis of its ‘North Field’ treasure.
- Turkmenistan: At fourth place comes Turkmenistan, another country in the Middle East, where there is a huge gas field like ‘Galkinysh’ which is counted among the largest reserves in the world.
- America: America, which is number one in production, is at fifth position in terms of reserves. America has large reserves of shale gas mainly in Texas and Pennsylvania.
On which countries is India dependent for gas?
India also has its own natural gas reserves. In the country, gas is mainly extracted from Krishna-Godavari Basin, Assam, Rajasthan and Gulf of Khambhat in Gujarat. However, this domestic production falls far short in front of our huge population and huge demand. This is the reason why India imports about 50 percent of its total gas requirement.
Qatar plays the most important role in fulfilling this need of ours. 40 to 45 percent of India’s total LNG imports come from Qatar alone. Apart from this, in recent years America has also emerged as a big supplier for India. Talking about Gulf countries, after Qatar, India also buys gas in large quantities from United Arab Emirates (UAE) and Oman. To meet long-term needs and ensure uninterrupted supply, India has also signed important agreements with countries like Australia and Russia.
Also read- After the shortage of LPG, what will be the turn of PNG, how does this system work?