LPG supply situation ‘still concerning,’ 300,000 tonnes stranded in Hormuz: Govt officials Energy Watch
Oil & Gas

LPG supply situation ‘still concerning,’ 300,000 tonnes stranded in Hormuz: Govt officials

LPG remains under stress, govt official flags ‘concerning’ situation; ~300,000 tonnes of LPG cargoes stranded in Hormuz

Shalini Sharma

New Delhi: India's LPG supply situation is “still concerning,” said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, on Tuesday, without giving away numbers. Speaking to reporters at an inter-ministerial press briefing on West Asia conflict and its impact on India’s energy supplies, she asserted that crude availability is normal, refineries are operating at peak capacity and there are no shortages of petrol and diesel at retail outlets.

However, commenting on LPG, she said, “With LPG, the situation is a matter of concern for us.” Sharma stressed that supply and delivery of cylinders for domestic consumers are continuing “just like before” and there is no dry-out at any LPG distributor.

She added that the government is making efforts to diversify LPG supply options. A source who spoke on the condition of anonymity because they were not authorised to speak to the media, however, said, “The LPG supply situation is critical.”

On March 16, a Very Large Gas Carrier (VLGC), named Shivalik, arrived at Mundra port with LPG. Then on Tuesday morning, another VLGC, named Nanda Devi, arrived at Vadinar port in Gujarat. The two vessels brought around 92,712 tonnes of LPG, which is equivalent to a day’s gas consumption in the country.

Around 300,000 tonnes of LPG stranded in Hormuz

Rajesh Kumar Sinha, Special Secretary, Ministry of Ports, Shipping and Waterways, who also addressed the inter-ministerial briefing, said that around 300,000 tonnes of LPG cargoes are currently stranded in the Strait of Hormuz. “An LPG carrier typically carries about 45,000 metric tonnes. Based on this, around 300,000 metric tonnes of LPG is stranded in the Strait of Hormuz,” he said.

22 Indian-flagged ships anchored in the Strait; talks underway with Iran: MEA

Randhir Jaiswal, Official Spokesperson, Ministry of External Affairs (MEA), said several ships remain anchored in the Strait of Hormuz region, adding that India is in talks with Iran and other countries to ensure their safe return. “Our intention is to negotiate with Iran and other countries to safely bring those ships back to the country… Discussions are underway,” he said. Officials indicated that 22 Indian-flagged ships are currently in the region.

Govt pushes shift away from LPG, fast-tracks PNG expansion

Sharma said the government is encouraging commercial LPG consumers to switch to piped natural gas (PNG), with state-run GAIL already holding meetings with city gas distribution companies. She said the government has written to states and union territories to clear pending permissions for pipeline laying with deemed approvals, approve new applications within 24 hours, waive road restoration and permission charges, relax working hours and working seasons, and appoint nodal officers to speed up execution. Monitoring committees are also to be set up.

She also appealed to consumers to use LPG sparingly and shift to alternatives such as induction and electric cooktops, wherever possible.

Enforcement intensifies; panic bookings show decline: Sharma

Sharma said around 12,000 enforcement raids have been conducted in recent days, leading to the seizure of about 15,000 cylinders. She cited examples: around 600 cylinders seized in Delhi in a day, about 450 inspections and raids in Uttar Pradesh with arrests, and 564 raids in Jammu and Kashmir, where FIRs have been filed and arrests made.

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On demand patterns, she said refill bookings peaked at more than 88 lakh on March 13 and have since declined to around 70 lakh, indicating a downward trend in panic bookings.

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