India increases liquefied petroleum gas production amid Middle East crisis

The South Asian nation has implemented emergency measures to ensure supplies for its large population

India has stepped up liquefied petroleum gas (LNG) production in light of the supply disruption caused by the Middle East conflict.

On March 10, New Delhi had invoked special legislation, the Essential Commodities Act (ECA), to ensure adequate gas supplies.

The federal government said on Tuesday that production of LPG had subsequently increased by 38%.

India’s daily LPG consumption is around 90,000 tons on average, of which imports comprise 55,000 tons while 35,000 tons are sourced from domestic production, according to the Hindu newspaper.

The report said the 38% increase would spur domestic production to more than 48,000 tons per day.

New Delhi imports 85% of its oil and nearly half of its natural gas. About half of the country’s oil supplies and 55% of liquefied natural gas (LNG) shipments are routed through the vital Strait of Hormuz.

Nearly 85-90% of the country’s LPG consumption goes to households as cooking gas while the rest is allocated for commercial and industrial purposes.

With curbs on industrial and commercial uses in place, the daily import requirement has likely come down to around 30,000 tons, according to the Hindu report.

Cargo shipping traffic through the Strait of Hormuz has come to a near standstill since the US-Israeli war against Iran began, pushing oil prices to as high as $120 a barrel earlier this month.

Nevertheless, two Indian-flagged LPG tankers have crossed the Strait of Hormuz and are now docked in India.