India to boost oil output, expand storage, diversify crude imports to shield consumers: Minister Puri

India will seek to strengthen its energy security by increasing domestic oil and gas production, expanding storage and diversifying import sources, as the country prepares for continued growth in energy demand and heightened risks to global supply chains, Petroleum Minister Hardeep Singh Puri said Oct. 27.

In addition, India's growing energy needs will require a diversified, multi-pathway strategy that combines hydrocarbons, gas, renewables, biofuels, nuclear power, and emerging technologies rather than relying on any single fuel or technology.

"By increasing domestic production, improving storage and diversifying imports, India will be able to protect Indian consumers from future price shocks that other parts of the world face," Puri told a conference in the western city of Goa.

The minister said energy security now extends beyond securing physical supplies. It also requires countries to manage geopolitical conflicts, shipping chokepoints, volatile prices and sudden disruptions while keeping economies moving.

He added that India had maintained steady energy imports during recent supply-chain disruptions, which he described as evidence of the success of the country's energy diplomacy.

"India continues to expand its energy partnerships, reduce dependence on limited sources and safeguard its energy security," he said.

The country had reduced its exposure to individual suppliers over the past decade by expanding the number of countries from which it sources crude oil to 41 from 27, Puri said. The country has also built 5.33 million metric tons of strategic petroleum reserves and increased refining capacity to 267 million mt per annum from 215 million mt, Puri said.

Other measures include expanding the number of fuel outlets to more than 100,000 from about 52,000 and increasing LPG import terminals to 22 from 11. Domestic LPG production had also risen to about 55,000 mt/day from around 34,000 mt/day, he said.

Energy diplomacy

Puri said India's agreement in January to source 10% of its LPG requirements from the US had proved crucial during the recent global energy crisis.

"We are further strengthening energy ties with Algeria, Canada, East Asian nations and Qatar to ensure reliable supplies," Puri said.

The Middle East accounted for about 93% of India's LPG imports in January-October 2025, but that share has fallen to 56% in the same period this year. US supply has risen more than fourfold in the same period, from 1.2 million mt to over 5 million mt, taking its share from about 7% to 35%, according to S&P Global Commodities at Sea data.

"For LPG, the big change this year is that India has become much less dependent on a single supply region," said Charles Kim, associate director at CAS.

"India's procurement strategy is increasingly about balancing economics with supply resilience. Middle Eastern barrels will remain competitive because of their proximity, but Indian buyers are putting more value on having alternative sources available when disruptions occur," he added.

Upstream push

The government is also seeking to raise domestic oil and gas output through initiatives, including the Samudra Manthan program, which Puri described as a major initiative to unlock India's offshore hydrocarbon potential.

The initiative includes opening nearly 1 million sq. km of previously designated "No-Go" areas for exploration, potentially expanding opportunities for domestic exploration and production, he added.

Puri said this would strengthen domestic exploration and production and help reduce India's dependence on imported hydrocarbons. Higher domestic output, combined with larger reserves and refining capacity, would give the country greater flexibility during periods of international disruption.

The federal Cabinet approved investments of up to 840 billion Indian rupees ($8.8 billion) over five years in late July to advance offshore oil and gas exploration under Samudra Manthan, or the National Offshore Exploration Scheme. The initiative is expected to catalyze reserve accretion of more than 600 million metric tons of oil equivalent by fiscal year 2030-31 (April-March), the petroleum ministry said July 31.

The government will fund up to 50% of eligible deepwater exploration drilling costs, capped at $71 million per well. By partially covering these costs, the scheme could significantly improve the economics of frontier exploration.

Alternate fuels

India was also using alternative fuels to reduce the pressure on its import bill. The expansion of E20 fuel, which blends 20% ethanol with gasoline, is providing additional income to farmers while helping reduce energy imports, Puri said. The GOBARdhan scheme similarly aims to convert agricultural residue and organic waste into compressed biogas.

India will therefore need to balance affordability, supply security and sustainability across a broad energy mix. Its long-term objective is not to replace one dependency with another, but to build a diversified system capable of absorbing price and supply shocks while supporting economic growth, he said.

"For a country of India's scale, success cannot mean choosing one fuel, one technology or one pathway. It means building an energy system that is secure, affordable, diversified and increasingly sustainable," Puri added.