India boosts LPG imports from US, Norway as Gulf supplies tighten

NEW DELHI, March 12 (Reuters) - India is securing more liquefied petroleum gas cargoes from new sources such as the United States, Norway, Canada and Russia, besides sources in the Gulf region that remain available, Oil Minister Hardeep Singh Puri said on Thursday, as the world's second-largest importer grapples with tight supplies.

The federal environment ministry has advised state pollution control boards to permit the use of biomass, kerosene and coal as alternate fuels for the hospitality and restaurant segment for one month to free up LPG usage, Puri said.

India previously imported about 60% of its LPG requirements from Gulf countries, Puri told parliament, adding that purchases had now been diversified.

The federal government has invoked emergency powers ordering refiners to maximise production of LPG and cut sales to industry to avoid a shortage for its estimated 333 million homes with LPG connections.

Domestic LPG supply is fully protected and the delivery cycle is unchanged, Puri said.

The panic about cooking gas supplies was triggered by consumer anxiety rather than a supply shortage, he added.

NON-HORMUZ CRUDE SOURCING INCREASES

India's crude oil, LPG, and liquefied natural gas supplies have been disrupted due to global shipping constraints after the U.S. and Israel's war with Iran halted traffic through the Gulf and the Strait of Hormuz.

Despite the government steps, restaurants, hotels, and industries across sectors are beginning to feel the strain from the tighter supplies of LPG, mainly used as cooking fuel.

Puri said that 20% of the average monthly commercial LPG requirement will be allocated from Thursday by oil marketing companies, in coordination with state governments to avoid hoarding or black marketing.

India consumed 33.15 million metric tons of cooking gas last year, with imports accounting for about 60% of demand.

Puri said that the South Asian nation's current crude supply position is also secure as sourcing of non-Hormuz crude has increased to 70% of its total imports.

India's petrol and diesel availability is also fully secure and LNG cargoes are arriving almost daily from alternative routes, he said.

"India has sufficient gas production and (LNG) supply arrangements to sustain this position even in the event of a prolonged conflict," Puri said.