Prime Minister Modi reviews measures taken to diversify sources of LPG, LNG supply

New Delhi: Prime Minister Narendra Modi chaired a second special meeting of the cabinet committee on security on Wednesday to safeguard India amid the war in West Asia. With the Strait of Hormuz blockade squeezing global energy markets, the Prime Minister reviewed a cross-departmental strategy to diversify the supply of liquefied natural gas (LNG) and liquefied petroleum gas (LPG).

During the meeting, the cabinet secretary briefed the Prime Minister on measures to ensure adequate availability of LNG, LPG and power. Modi also discussed the availability of fertilizers in the country and steps being taken to ensure their availability in the kharif and rabi seasons.

“Cabinet Secretary briefed about the action taken to ensure the supply of petroleum products, particularly LNG/LPG, and sufficient power availability. Sources of LPG procurement are being diversified with new inflows from different countries. Similarly, Liquefied Natural Gas is being sourced from different countries. He further briefed that LPG prices for domestic consumers have remained the same, and anti-diversion enforcement to curb hoarding and black marketing of LPG is being conducted regularly,” said an official statement.

The war in West Asia and the blockade of the Strait of Hormuz have brought about a crisis in the global energy market, and India has also been significantly impacted, with about 50% of its LNG imports and 90% of its LPG imports dependent on West Asian producers.

Indian oil and gas marketing companies are exploring alternative sources of LPG and LNG, including Russia, Australia, the US and Angola.

The statement further noted that initiatives have been taken to expand piped natural gas (PNG) connections to reduce pressure on LPG. “Measures like exempting the gas-based power plants with a capacity of 7-8GW from the gas pooling mechanism and increasing rake for positioning more coal at thermal power stations, etc., have also been taken to ensure availability of power during the peak summer months,” it said.

The meeting also discussed interventions to address emerging challenges across various sectors, including agriculture, civil aviation, shipping and logistics.

“Efforts to globally diversify our sources for energy, fertilizers and other supply chains, and international initiatives for securing safe passage of vessels through the Strait of Hormuz and ongoing diplomatic efforts are being taken,” said the statement.

Various efforts like maintaining urea production to meet requirements, coordinating with overseas supplies for DAP (diammonium phosphate) and NPK fertilizer (nitrogen, phosphorous, potassium) suppliers are being taken to ensure fertilizer supply, the statement said, while adding that state governments are being requested to curb black marketing, hoarding, and diversion of fertilizers through daily monitoring, raids, and strict action.

India is already looking to diversify its fertilizer imports from alternative sources, including Russia, Morocco and Togo.

While noting that the retail prices of food commodities have been stable over the past month, the statement said that control rooms have been set up for constant monitoring and interaction with states and Union territories on prices and enforcement of the Essential Commodities Act. The prices of agricultural products, vegetables and fruits are also being monitored, it said.

During the meeting, Modi also assessed the availability of critical needs for the common man. He said that all efforts must be made to safeguard the citizens from the impact of this conflict, the statement added.