NATURAL GAS & LPG SHORTAGE

NEWS: India recently faced a short-term shortage of natural gas and LPG (Liquefied Petroleum Gas).

Reasons for the Current Gas Shortage

• Rising Global Prices
  • Global natural gas prices increased significantly.
  • Made imports from distant countries economically viable.
• Dependence on Imports
  • India imports a significant portion of its natural gas and LPG requirements.
  • Earlier, India mainly imported gas from nearby suppliers like Qatar.
• Shipping Time from Distant Sources
  • Gas imports from Norway and the U.S. take longer to reach India.
  • Shipping industry estimates around two months for ships to travel to the U.S./Norway and return with gas cargo

Government Measures to Increase LPG Supply

• Increasing Domestic LPG Production
  • The Petroleum and Natural Gas Ministry directed oil refining companies to maximize LPG production.
• Prioritizing Households Over Industries: LPG supply has been prioritized for households rather than industrial users.
  • India’s LPG output increased by about 10%.
• Diversifying Import Sourceà Earlier main supplier: Qatar.
  • Now India is exploring other suppliers like: United States, Norway

Way Forward

• Expand long-term LNG contracts with multiple countries such as the United States, Norway, Australia etc
• Develop strategic LPG and LNG storage facilities to manage short-term supply disruptions
• Encourage exploration and production through reforms like the Hydrocarbon Exploration and Licensing Policy (HELP)
• Promote efficient cooking fuels, improved stoves, and energy-saving technologies