India Strengthens Oil and Gas Sector Amid Geopolitical Tensions

India's oil and gas sector continues to play a critical role in meeting the country's growing energy requirements. With rising economic activity, energy demand is expected to increase, underscoring the need for a secure, reliable, and diversified energy mix.

The government has been working towards balancing rising energy needs with the transition towards cleaner and more sustainable energy sources. One key strategy is to strengthen domestic capabilities and reduce import dependence on crude oil and natural gas.

Recent geopolitical tensions in the Middle East have highlighted the need for India to lower its import dependence, diversify sources, and strengthen domestic capabilities. To mitigate supply chain disruptions and price fluctuations, the government has implemented measures such as raising LPG production levels from 34 thousand metric tonnes a day to 54 thousand metric tonnes a day.

Piped natural gas (PNG) has emerged as an increasingly important element in India's energy mix. The Natural Gas (Supply Regulation) Order, 2026, was notified to prioritize the allocation of natural gas to sectors such as domestic PNG and compressed natural gas (CNG) for transport.