India Has No Shortage of LPG, LNG — What Is India’s Plan B Amid Hormuz Crisis?

Amid the ongoing tensions involving the United States, Israel, and Iran, the Strait of Hormuz has reportedly been shut down. This crucial maritime route accounts for nearly one-fifth of the world’s oil and gas supply. With global energy markets on edge, questions are being raised about India’s contingency strategy and how long its energy reserves can last.

India’s Dependence on the Strait of Hormuz

The Strait of Hormuz is a key corridor for India’s oil and gas trade with Gulf nations. Around 20% of India’s crude oil imports pass through this route. Apart from Iran, countries such as Saudi Arabia, the UAE, Qatar, and Kuwait also supply oil and gas to India via this channel.

While India is not heavily dependent on this route for crude oil alone, it relies significantly on it for LPG (Liquefied Petroleum Gas) and LNG (Liquefied Natural Gas). Ensuring uninterrupted LPG and LNG supply could therefore pose a bigger challenge if the route remains closed for an extended period.

Crude Oil, Gas, LPG and LNG Stock Position

According to data from energy intelligence firm Kpler, India currently holds approximately 100 million barrels of commercial crude oil stock. This includes:

• Inventory held by refineries
• Underground Strategic Petroleum Reserves (SPR)
• Oil cargoes currently en route to Indian ports

Government sources indicate that India has around 25 days of stock for crude oil, gas, LPG, and LNG under regular consumption patterns.

Earlier in February, Petroleum Minister Hardeep Singh Puri stated that if India combines its strategic reserves, refinery inventories, and crude available at ports, the country has a total backup of 74 days. Under the government’s “Mission Samudra Manthan,” efforts are underway to increase this buffer to 90 days.

Russia Could Be a Key Alternative

In case of prolonged disruption, India can also tap into Russian oil cargoes stored in the Indian Ocean and Arabian Sea region. These reserves exist partly because India has been importing relatively lower volumes of Russian crude in recent months, leaving some storage capacity available.

This alternative supply route could help stabilize oil inflows and reduce immediate risks if the Strait of Hormuz remains inaccessible.

India’s Plan B at a Glance

• Diversified crude sourcing beyond the Gulf
• Strategic petroleum reserves covering over two months
• Expansion plan to increase reserves to 90 days
• Possible support from Russian oil storage in nearby waters