A big change is being seen in the supply of LPG these days. Amidst the reduced supply of LPG from Gulf countries, India has significantly increased the purchase of gas from America. Now America has emerged as a major and important supplier of LPG for India.
In August, India purchased about 6.2 lakh tonnes of LPG from America, while in July this figure had reached about 8.9 lakh tonnes.
Situations like the impact of the Sea Route of Hormuz have had a major impact on the supply of gas coming to India from Gulf countries. This sea route is considered very important for transporting oil and gas from Gulf countries to other countries. According to the data, India could get only about 1.4 lakh tonnes of LPG from UAE in August, while Qatar supplied about 60 thousand tonnes. At the same time, India has not received any supply of LPG from Saudi Arabia in both the months of July and August.
Increased trust in America for LNG also
Apart from LPG, a similar change has also been seen in the supply of LNG. Not a single cargo arrived from India's largest LNG supplier Qatar in April, while on the other hand, the arrival of LNG from America increased from about 7.2 lakh tonnes in July to about 7.5 lakh tonnes in August. According to commodity data firm Kpler, before this Qatar had been supplying about 12 lakh tonnes of LNG to India on an average in a month.
According to expert Sumit Ritolia, purchasing more gas from America is not just a matter of deliberately choosing America over Gulf countries. Due to disruptions in supply from West Asia, India is having to turn to other countries to meet its needs. Due to ships coming from long distances, the cost of freight and insurance is increasing significantly. Besides, prices also remain high in the international market. This means that India is currently paying a slightly higher price to ensure its energy security and uninterrupted supply.
Crude oil purchases from Russia continue unabated
Even though America's importance has increased in the case of LPG and LNG, Russia still remains India's largest supplier of crude oil. During August, India purchased about 2 million barrels per day of crude oil from Russia. Apart from this, about 3.83 lakh barrels of oil per day was also imported from Venezuela in August. This changing purchasing pattern of India clearly shows that the country is trying to reduce the impact of any global crisis by taking supplies from different countries for its oil and gas needs.