India's Strategic Energy Moves Amid Global Tensions
India's Dual Approach to Energy Crisis
In light of the escalating energy crisis due to the Iran conflict, India is adopting a two-pronged strategy regarding gas. To mitigate the energy crisis, the country is not only exploring new import routes but also enhancing its focus on domestic production. Currently, India relies heavily on imports to meet its gas requirements, a dependency it aims to reduce. According to data from the Petroleum Planning & Analysis Cell for the first half of FY 2025-26, India's LPG production stood at 6219 TMT.
Significant Energy Discovery
Amidst global tensions, India is ramping up its domestic energy production efforts. The Oil and Natural Gas Corporation Limited (ONGC) has achieved a significant milestone by commencing gas production from its Daman Upside Development Project located in the Arabian Sea.
Gas Production Initiated
This ONGC project, situated 180 km northwest of Mumbai and 80 km south of Pipavav in Gujarat, has seen an investment of approximately $1 billion. The company has successfully initiated production, which is expected to reduce India's reliance on gas imports. The gas produced is being transported to the Hazira plant. The commencement of gas production from ONGC's Daman project is a notable achievement for India, especially in the context of the ongoing Middle East conflict. The company plans to gradually increase production from all wells. Meanwhile, Hindustan Petroleum Corporation Limited (HPCL) has provided updates on LPG cylinder and petrol-diesel supplies, confirming that there are no disruptions in supply.
Exploring New Import Partners
Historically, India has sourced its gas primarily from the Middle East, purchasing from countries like Qatar, Kuwait, UAE, and Saudi Arabia. However, due to the ongoing conflict, imports from these nations have been hindered. Consequently, India is now seeking new partners, turning to countries such as the USA, Australia, Norway, and Argentina for gas procurement.
Positive Updates from Oil Companies
HPCL has reported that LPG cylinder supplies are consistently being delivered from its 55 bottling plants, with a total of 1,410,000 cylinders being distributed. This includes 27,800 cylinders of 5 kg and 1,500 cylinders of 2 kg. Additionally, HP's petrol stations are selling 37,269 kiloliters of petrol and 75,356 kiloliters of diesel. Amid the energy crisis, these updates from the oil company are reassuring. According to the Petroleum Ministry, India has sufficient petrol and diesel reserves for 60 days as of April 2026, with strategic petroleum reserves totaling approximately 5.33 million metric tons, equating to nearly 74 days of storage.
Indian Oil's Delivery Update
Previously, Indian Oil also shared updates indicating that around 2.8 million LPG cylinders are being delivered daily across the country. The oil company emphasized an increased focus on domestic cylinder deliveries in light of the current energy crisis.