Amid escalating tensions in West Asia, Australia and Canada have offered to supply natural gas to India as New Delhi explores alternative energy sources to safeguard its energy security, government sources said on Thursday.
The move comes as India looks to diversify its energy imports in response to the evolving geopolitical situation in the region. Currently, India imports around 195 million metric standard cubic metres per day (mmscmd) of natural gas, with Qatar supplying about 60 mmscmd, making it one of the country’s major suppliers.
According to sources, the government has intensified efforts to identify alternative markets for gas and other energy supplies. India is also in discussions with major global oil producers and traders to procure crude oil and liquefied petroleum gas (LPG) to ensure uninterrupted supply.
Officials said the government is engaging with global energy institutions including the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) as part of efforts to stabilise supply chains and monitor market developments. India is also holding talks with the United States regarding insurance coverage for ships transporting energy cargo.
In a step towards reducing dependence on any single region, India has recently signed new energy contracts with the United Arab Emirates and the United States. These agreements are part of the government’s broader strategy to diversify its energy basket and strengthen long-term supply security.
Government sources said the energy situation is being reviewed twice daily and that India remains in a “very comfortable position” in terms of energy availability. The country’s stock levels are considered stable and continue to be replenished regularly.
Sources also emphasised that there is currently no global shortage of LPG, LNG or crude oil, adding that India remains in contact with several other suppliers to ensure adequate supply.
Earlier this week, officials said India maintains a total inventory cover of nearly eight weeks of crude oil and petroleum products, including strategic reserves. This buffer is expected to help the country manage short-term supply disruptions.
India currently holds around 25 days of crude oil inventory, along with about 25 days of petrol and diesel stocks. Combined with strategic reserves, the country’s inventory position is considered strong enough to withstand temporary supply shocks.
Notably, only about 40 per cent of India’s crude oil imports pass through the Strait of Hormuz, a critical global shipping route that could be affected by regional tensions. The remaining 60 per cent of crude imports are sourced through alternative routes and suppliers, reducing the country’s vulnerability to disruptions in the region.
India also continues to import crude oil from Russia under existing contracts, further diversifying its supply base.
Officials said the government is closely monitoring developments in West Asia and global energy markets. Despite the uncertainties, India’s diversified sourcing strategy and strong inventory levels are expected to ensure uninterrupted energy supplies.
Sources added that India remains in a comfortable position with respect to LPG and LNG supplies, while the government continues to track global market trends to maintain stable energy availability for the country.
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