As geopolitical tensions continue to disrupt energy markets in the Middle East, Indian refiners have moved quickly to secure crude oil and LPG supplies, helping ensure that domestic demand remains protected in the coming weeks.
According to sources cited by Reuters, refiners have built up enough crude oil inventories to meet demand through at least August. LPG supplies are also expected to remain comfortable until at least mid-July following increased purchases from Abu Dhabi National Oil Co (ADNOC) and other suppliers.
"We are well covered on Liquefied Petroleum Gas (LPG) front at least till mid-July, and crude is not a problem," a refinery source told Reuters.
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Refiners secure additional cargoes
Indian refiners have reportedly been sourcing crude oil and LPG cargoes from ADNOC through ship-to-ship transfers. Supplies have come from ADNOC's storage facilities in Fujairah, Zirku and Das Island, along with transfer operations in the Fujairah-Sohar region and Malaysia. Most LPG cargoes have been sourced from Sohar.
Among the latest deals, state-run Hindustan Petroleum Corporation Ltd (HPCL) purchased 4 million barrels of Murban crude from the United Arab Emirates (UAE) for August delivery. The cargoes were acquired from Totsa, the trading arm of TotalEnergies and Mercuria.
HPCL had also reportedly bought 2 million barrels of crude from Brazil and West Africa last week for processing at its Rajasthan refinery. Other refiners, including Indian Oil Corporation (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL), have also turned to spot purchases to strengthen supplies.
Diversifying sources amid disruptions
The Middle East crisis has affected global energy flows for more than 100 days. The situation intensified after US and Israeli strikes on Iran on February 28, followed by disruptions linked to the Strait of Hormuz, one of the world's most important energy shipping routes.
To reduce dependence on any single source, Indian refiners have expanded purchases from Latin America and Africa while continuing to receive supplies from Saudi Arabia.
Strategic reserves expansion underway
At the same time, India and the UAE are accelerating plans to strengthen long-term energy security through expanded strategic oil reserves.
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The two countries are working on plans to create 30 million barrels of strategic oil reserves following agreements signed during Prime Minister Narendra Modi's visit to the UAE last month.
India, which imports nearly 88% of its crude oil requirements, is also looking to increase UAE-linked crude storage capacity from 5.8 million barrels to 30 million barrels through a mix of existing storage caverns and new infrastructure projects.
The broader cooperation framework also includes plans for gas reserves, reflecting efforts by both countries to improve energy security amid continuing global uncertainty.
