India secures alternative natural gas amid Hormuz disruptions: government

The Indian government has been taking actions to procure natural gas from alternative suppliers and via alternative routes to offset disruptions caused by the Middle East conflict, the Press Information Bureau, the country's nodal government agency, said on March 11.

"Gas companies have also secured LNG cargoes from new sources, and two LNG cargoes are on their way to the country," the Indian government said in the statement without elaborating further on the cargo details.

India's total natural gas consumption is about 189 million metric standard cubic meters/day, of which 97.5 MMscm/d is produced domestically, it shared. About 47.4 MMscm/d of supply has been affected due to force majeure conditions, the government noted.

The Government's Natural Gas Control Order, issued under the Essential Commodities Act on March 9 to manage gas supplies and protect priority sectors, is also another step toward strengthening its preparedness to respond to the evolving situation in the Middle East, the PIB said.

The Indian government ordered the redirection of all domestic gas and regasified LNG to key priority sectors, overriding existing gas sales agreements amid supply disruptions from the war in the Middle East.

The government identified four priority sectors and set allocation percentages for each, as per a March 9 notification issued by the Ministry of Petroleum and Natural Gas.

The notification said that the gas requirement will be met by curtailing supplies to petrochemical facilities, including, but not limited to, ONGC Petro-Additions, GAIL's Pata Petrochemical Complex, Reliance's oil-to-chemicals business, and other high-pressure, high-temperature gas consumers. Gas will also be redistributed via full or partial curtailment of power plants as required, it said.

This comes amid shortages and price spikes due to escalating hostilities in the Middle East and disruptions in the Strait of Hormuz.

Platts, part of S&P Global Energy, assessed the West India Marker, the benchmark for LNG cargoes delivered to India, for April at $17.933/million British thermal units on March 11. The price was assessed at $10.397/MMBtu for April on Feb. 27, before the war in the Middle East broke out.

Meanwhile, India's shipping ministry has implemented measures to safeguard Indian seafarers, ships, and maritime trade operations, the Indian government said in the same PIB statement.

As of March 11, 28 Indian-flagged ships have been operating in the Persian Gulf region. Of these, 24 ships were located west of the Strait of Hormuz, carrying 677 Indian seafarers, while four ships were east of the Strait with 101 Indian seafarers onboard, the Indian government said.

"Their safety and security are being actively monitored," it said. "Authorities, ship managers, and recruitment agencies are coordinating closely with Indian embassies and local authorities to ensure safety and provide assistance to Indian seafarers wherever required."

Port operations across India remained stable, and steps were being taken to ensure the continuity of export-import trade, it said.

The Directorate General of Shipping has issued advisories directing Indian-flagged ships and Indian seafarers to adopt enhanced security measures and comply with reporting protocols, including submission of crew details, while a 24-hour control room has been operational since Feb. 28 to monitor developments and provide assistance, it said.

"The Government remains committed to ensuring the safety and welfare of Indian seafarers and protecting India's maritime interests," the PIB statement said.