India sets targets for oil companies to boost cooking gas output amid Middle East war
The mandate mitigates import reliance after the Strait of Hormuz conflict disrupted Middle Eastern supply routes, which previously fulfilled 90% of India's LPG import needs.
A worker manages stacked liquefied petroleum gas (LPG) cylinders at a distribution center. In response to supply disruptions from the Strait of Hormuz conflict, India has established mandatory daily cooking gas production targets totaling 63,810 metric tons across domestic refiners to secure domestic supplies. Photo: Reuters
India has set a maximum daily cooking gas production target of 63,810 metric tons for state-run and private refineries to ensure domestic supplies and build buffers after the US-Israeli war against Iran disrupted supplies of the essential fuel, according to an August 13 government order.
Here are more details from the order:
- Companies are required to maintain adequate infrastructure for storing and transporting liquefied petroleum gas (LPG), either directly or through railways and road tankers, to meet specified quantities.
- The federal government will update the targets every January and July to reflect new production and additional output from existing refineries.
- India was buying about 90% of its cooking gas imports from the Middle East before the war on Iran disrupted supplies from March due to the blockade of the Strait of Hormuz.
- India has set production targets for individual refiners with Reliance Industries Ltd's
- domestic-market-focused refinery tasked to produce 18,000 tons a day of LPG.
- State-run explorers Oil and Natural Gas Corp and Oil India Ltd, and gas utility Gail India Ltd are expected to contribute 10% of the nationwide target.
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