‘ONGC doing something big in…’: Chairman Arun Singh on India’s energy reliance, security

Iran war: ONGC Chairman and CEO Arun Kumar Singh has indicated that the company is planning significant developments in the Strategic Petroleum Reserves (SPR) to strengthen India’s energy security. "ONGC is doing something big in SPR," he said. 

Speaking at the Energy Security conclave organised by the Petroleum and Natural Gas Regulatory Board (PNGRB), Singh emphasised the need for India to reassess its traditional reliance on the Middle East for oil and gas supplies amid growing global uncertainties.

India currently depends on the Middle East for nearly half of its crude oil imports, 30 per cent of its gas, and 85-90 per cent of its liquefied petroleum gas (LPG) supply. Singh highlighted that this dependence makes the country vulnerable to supply disruptions and price volatility, especially given recent geopolitical tensions.

The closure of the Strait of Hormuz for six weeks, a critical shipping lane for Gulf countries exporting crude oil, natural gas, and LPG, caused an energy crisis in several importing nations, including India. This event underscored the risks of over-reliance on a single region for energy needs.

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"Thinking that the Middle East is nearest to us and therefore all their resources (can be accessed easily), we should take it with a pinch of salt," said Singh. He described the current global energy landscape as undergoing a paradigm shift, with increasing de-globalisation and geopolitical conflicts undermining long-held energy security assumptions.

He stressed the importance of boosting domestic production, calling it an existential necessity. 

"We should chase wherever oil or gas is in our country at any cost, because in a crisis nobody (will help)," he said. In addition to increasing domestic output, Singh called for expanding strategic storage capacity. He stated, "We must now address this storage... whatever it takes.”

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Singh also highlighted the importance of diversifying energy sources and supply chains. "No country wants you to take away his oil. He wants you to take away his money, not the oil…We must diversify energy types... we must diversify our energy storage," he said.

He noted improvements in domestic LPG supply, which has increased from 30 to 60 per cent, despite the associated costs. Singh advocated prioritising piped natural gas for households to ensure uninterrupted cooking fuel supply.