India is seeking support from the United States to secure marine insurance cover for vessels transporting oil from the Middle East, as the government looks to ensure continuity of energy supplies amid disruptions in the Strait of Hormuz, a senior oil ministry official told PTI.The move comes as the widening conflict in West Asia has affected tanker movement through the strategic sea route, which carries about one-fifth of the world’s oil and large volumes of liquefied natural gas (LNG).
According to the official, India currently has crude oil stocks in tanks, pipelines and shipments in transit sufficient to meet about 25 days of demand. The country also holds a similar level of reserves of refined fuels such as petrol and diesel.India imports around 88 per cent of its crude oil and roughly half of its LNG needs. Of this, about 40–50 per cent of crude oil shipments and 50–60 per cent of LNG imports pass through the Strait of Hormuz.The strait, about 21 nautical miles wide at its narrowest point, has even narrower shipping lanes comprising two channels of around two miles each separated by a two-mile buffer.“We are in a comfortable position right now,” the official said, noting that oil supplies not routed through the strait continue to reach India. He added that the country is sourcing additional supplies from West Africa, Latin America and the United States to compensate for potential disruptions.The oil ministry is also in talks with major producers and global trading firms to secure additional supplies of crude oil, liquefied petroleum gas (LPG) and LNG.“We are in touch with US authorities for getting a cover from the International Development Finance Corporation for vessels to transit the Strait of Hormuz,” the official said, news agency PTI quoted.US President Donald Trump has directed the multilateral financial institution to provide political risk insurance and financial guarantees for maritime trade in the region.However, before the International Development Finance Corporation can extend such coverage, a fund worth hundreds of millions of dollars must be established, the official said, adding that insurance premiums would be borne by the cargo contracting parties.India is also exploring crude purchases from a wide range of suppliers, including Russia, to rebuild its stockpile.The government is holding discussions with suppliers such as Sonatrach and Abu Dhabi National Oil Company, along with global trading houses including TotalEnergies, Vitol and Trafigura, to secure additional oil and gas supplies.The official added that imports of crude oil and cooking gas LPG from the United States have also increased.While India’s oil inventory remains comfortable, LNG supplies have been affected by the disruption in shipping through the Strait of Hormuz. This has led to reduced gas availability for industrial consumers.To manage the situation, the government may reprioritise gas allocations to ensure critical sectors receive the fuel they require.India currently meets about half of its natural gas demand — estimated at around 195 million standard cubic metres per day (mmscmd) — through imports.Disruption of shipping through the strait and force majeure declared by India’s largest LNG supplier QatarEnergy have cut off about 60 mmscmd of gas supplies.The official added that Oil Minister Hardeep Singh Puri has also discussed the evolving situation in global oil markets with the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC).
