West Asia Crisis Exposes Energy Risks India Must Rethink Energy Reliance: ONGC Chief

(MENAFN- KNN India) New Delhi, Apr 10 (KNN) Amid ongoing global energy disruptions triggered by the West Asia conflict, Arun Kumar Singh, Chairman and CEO, Oil and Natural Gas Corporation (ONGC), has cautioned India against relying heavily on traditional supply assumptions, particularly its proximity to the region for sourcing oil and gas.

He noted that India depends on West Asia for nearly half of its crude oil imports, about 30 per cent of its natural gas, and 85–90 per cent of its LPG requirements, making the country vulnerable to geopolitical disruptions.

Supply Shock Highlights Vulnerabilities

Singh pointed to the recent six-week shutdown of a key shipping route used by Gulf nations to export crude oil, natural gas, and LPG, which triggered supply stress across importing countries, including India. The disruption forced prioritisation of gas supplies, underlining the risks of concentrated supply chains.

Speaking at the Energy Security conclave organised by oil regulator PNGRB on Friday, Singh said, "Thinking that West Asia is nearest to us and therefore all their resources (can be accessed easily), we should take it with a pinch of salt," adding that shifting geopolitical dynamics and de-globalisation trends are weakening long-held assumptions about energy security, PTI reported.

Call for Strategic Storage and Domestic Production

Emphasising resilience, Singh urged India to expand its strategic energy storage capacity as a safeguard against supply and price shocks. He also stressed the need to aggressively boost domestic exploration and production.

“In a crisis, countries prioritise their own needs. Increasing domestic output is an existential necessity,” he said, advocating exploration“at any cost” to reduce import dependence.

Volatility and Resource Nationalism Rising

Highlighting growing instability in global energy markets, Singh said refining economics have become increasingly unpredictable, with unusual instances of product margins exceeding crude costs.

He also pointed to rising resource nationalism, with producing nations becoming more protective of their energy reserves.

Diversification Key to Future Readiness

The ONGC chief called for diversification across both energy sources and supply chains. He also underlined the importance of expanding storage infrastructure and optimising fuel usage patterns.

(KNN News)

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