India Urged to Increase Use of Alternative Energy Sources Amid Middle East Crisis
By Tsvetana Paraskova of OilPrice.com
Prime Minister Narendra Modi of India has called on the government to urgently explore the expansion of alternative energy sources, including biogas as a replacement for liquefied petroleum gas (LPG). This comes as the Middle East crisis continues to impact oil and gas supply to the world’s third-largest crude importer.
Modi has also urged ministers to speed up the implementation of reforms aimed at transforming India into a developed nation by 2047, in time for its 100th independence anniversary.
India has been facing challenges due to the energy crisis triggered by the conflict in Iran. With limited oil supply from the Middle East, India has had to increase imports of Russian oil, with approval from the U.S., and explore alternative sources of crude and LPG beyond the Middle East.
Recent reports suggest that India is considering sending empty tankers to the Strait of Hormuz to load oil supplies from Gulf producers, marking the first such move west of the chokepoint since the Iran conflict began.
Despite higher costs and longer journey times, India has been sourcing oil and LPG from regions that do not rely on the Strait of Hormuz for transit.
Approval from both the U.S. and Iran will be necessary for Indian tankers to pass through the Gulf of Oman blockade and the Strait of Hormuz to reach export ports in the Persian Gulf.
As the Middle East crisis enters its third month, India, one of the fastest-growing emerging markets, is working to mitigate the impact of the oil shock on consumer prices, foreign exchange reserves, and economic growth.