War puts India’s oil, gas imports under stress

The escalating war in West Asia is putting India’s oil and gas imports under stress with tankers and gas carriers bound for India stranded in the Persian Gulf and Qatar shutting down its Liquified Natural Gas (LNG) production facility.

The escalating war in West Asia is putting India’s oil and gas imports under stress with tankers and gas carriers bound for India stranded in the Persian Gulf and Qatar shutting down its Liquified Natural Gas (LNG) production facility.

Some 200 internationally-trading crude oil and product tankers are stranded in the Persian Gulf following a total stoppage of ship movement across the Strait of Hormuz, as per Lloyds List Intelligence. Their data shows that while China’s Sinokor has the most ships stranded among all owners, Indian government-owned Shipping Corporation of India (SCI) too is a leading owner whose assets are stranded. SCI ships with cargo carrying capacity of almost 8 lakh tonne are stranded. Sanmar Shipping, part of the Chennai-based Sanmar Group, has ships with 3 lakh tonne of cargo capacity there.

At least 22 Indian flagged oil tankers and gas carriers with nearly 400 Indian seafarers onboard are stranded in Persian Gulf, reports Anil Devli, CEO of Indian National Shipowners’ Association. More than 35 Indian flagged ships are in the region, he says.

Most of the stranded ships are at anchor while owners and charterers await clarity on transiting the chokepoint of Strait of Hormuz.

All of India’s Liquified Petroleum Gas (LPG) needs are imported from Qatar and Saudi Arabia and they have been stressed too.

The Indian government has said that India is in a “reasonably comfortable position” with 25 days of crude oil in reserves not including the emergency-earmarked Special Petroleum Reserves and two to three weeks of LNG reserves. The government has assured that it had already been looking at diversifying LPG supplies.