West Asia conflict: India has 2–3 weeks of LNG Reserves, comfortably placed on LPG, say oil ministry sources 

Amid the escalating conflict in West Asia and growing global concerns over supply chain disruptions, India maintains a buffer of two to three weeks of LNG reserves, a top official from the Ministry of Petroleum and Natural Gas told Business Today. Additionally, the Indian government is comfortably placed with its LPG (Liquefied Petroleum Gas) supply chains, another source told Business Today, citing a diversified sourcing strategy.

“We as a country remain comfortably placed regarding energy supplies despite the intensifying conflict in West Asia and a halt in production at key Qatari Liquefied Natural Gas (LNG) facilities. We are continuously monitoring the situation,” a top official familiar with the matter told Business Today.

This comes as global energy markets react to a dramatic escalation in the West Asia conflict. On Monday, following regional drone strikes, QatarEnergy announced an immediate halt in production at its major facilities in Ras Laffan and Mesaieed. As one of the world’s leading LNG exporters, this sudden disruption has pushed up international gas prices, placing pressure on importing nations across Asia and Europe.

The development follows New Delhi’s assessment of the impact of a direct military confrontation between a US-Israeli coalition and Iran. The conflict, which shifted from a shadow war to open engagement after the launch of ‘Operation Epic Fury’ on February 28, has disrupted regional shipping and triggered strikes on energy infrastructure.

Strait of Hormuz and Global energy stakes

At the centre of current concerns is the Strait of Hormuz, a narrow waterway often described as the world’s energy “jugular vein.” Connecting the Persian Gulf to the Arabian Sea, the strait handles nearly 20% of global oil consumption and a significant share of seaborne LNG. India sources approximately 40% of its crude oil imports through the Strait of Hormuz, while the remaining 60% comes from alternative routes and suppliers, a senior government official told Business Today on condition of anonymity.

While the government remains confident about its reserves and diversified supply chains, analysts tracking the energy sector caution that LPG and LNG could prove more sensitive than crude oil. Unlike crude, which can be stored in large underground caverns, natural gas requires specialised high-pressure storage infrastructure, limiting the duration of available buffers.

The ongoing conflict, which intensified over the weekend with direct military strikes involving Iran, the United States, and Israel, has disrupted routine tanker movement through the region. Iranian authorities have indicated a potential closure of the strait, resulting in a spike in maritime insurance premiums and prompting several commercial vessels to avoid the route.

Analysts warn that if instability persists, the geopolitical risk premium embedded in energy prices could remain elevated. While India’s current inventories offer protection against immediate shocks, the longer-term economic impact — including potential pressure on inflation, the rupee, and import bills — will depend on how quickly regional production and shipping routes stabilise.