Kolkata: The escalating conflict between Iran and the US-Israel combine has created a choking of supply of gas from West Asia. However, the search for new sources amidst the crisis has resulted in new possibilities opening up from other regions, reports said quoting officials. They said supplies from Russia, West Africa, North America, South America, and non-Gulf Middle Eastern routes have helped in these tough situations. Countries such as Australia, Canada and a few others have offered additional gas supplies even as New Delhi continues to explore alternative sources of energy.
Officials have said that over the past 10 years, India has started diversified crude oil procurements from 13 other countries beyond the 27 which existed earlier. Therefore, the country does not remain vulnerable to a single maritime chokepoint. “We source crude from wherever supplies are available, competitively priced, and deliverable, and we will continue to do so. This has been our consistent position across administrations and across geopolitical cycles,” a senior government official told the media without being named.
Additional gas offers
According to reports, several countries, including Australia and Canada, have offered additional gas supplies to meet India’s energy needs. India, the fastest growing major economy, is also continuing to explore new sources to further strengthen its energy security. Recently, India has signed new energy supply agreements with the US and UAE to ensure long-term, stable supplies.
The bottomline: India is no longer critically dependent on the Strait of Hormuz. Officials stated that only about 40% of India’s total crude oil imports come through this strait. The other routes through which India procures the rest 60% of its crude remain unaffected by the West Asian conflict. India also sources crude from Russia, West Africa, the US, Central Asia and some other countries outside the Gulf region.
India’s principle: Buying from wherever cheap
PTI quoted a senior government official saying that India’s primary principle for energy procurement is national interest. Indian refiners buy oil from places where supplies are available, prices are competitive and the delivery is feasible. According to officials, every government decision is focused on three key things: affordable fuel prices, consistent supply, and a sustainable system.