India Strengthens Domestic Oil and Gas Capabilities Amid Geopolitical Tensions

The Indian oil and gas sector is navigating geopolitical tensions and supply chain disruptions by strengthening domestic capabilities and diversifying energy sources.

Geopolitical tensions in the Middle East and disruptions around the Strait of Hormuz have heightened concerns about energy security. India imports 60% of its liquefied petroleum gas (LPG) consumption, with around 90% passing through the Strait of Hormuz, making it vulnerable to supply chain disruptions.

The government has taken measures to manage supply disruptions and safeguard the sector against price and supply shocks. Domestic LPG production has been increased from 34 thousand metric tonnes a day to 54 thousand metric tonnes a day.