New Delhi, April 10: India needs to recalibrate its energy security strategy and reduce reliance on traditional supply assumptions, particularly its dependence on the Middle East, amid rising geopolitical uncertainties, Arun Kumar Singh, Chairman and CEO of Oil and Natural Gas Corporation (ONGC), said.
Speaking at an energy security conclave organised by the Petroleum and Natural Gas Regulatory Board (PNGRB), Singh highlighted that recent West Asia tensions have triggered one of the most significant energy shocks in decades, exposing structural vulnerabilities in India’s supply chain.
India currently relies on the Middle East for nearly 50% of its crude oil imports, around 30% of natural gas supplies, and 85–90% of its LPG requirements. Singh cautioned against over-reliance on geographical proximity as a strategic advantage, noting that access to these resources cannot be taken for granted during periods of conflict.
The recent crisis, which included a six-week disruption of a key shipping route in the Persian Gulf, led to supply constraints and forced authorities to prioritise gas allocation to critical sectors, underscoring the fragility of existing supply arrangements.
Highlighting broader structural risks, Singh pointed to a shift towards a more fragmented and de-globalised world order, which could further complicate energy access for import-dependent economies like India.
He emphasised that enhancing domestic exploration and production has become an “existential necessity,” calling for aggressive efforts to tap domestic hydrocarbon resources despite challenges such as deepwater exploration.
Additionally, Singh stressed the need to significantly expand strategic storage capacities to mitigate supply and price shocks, amid increasing volatility in global energy markets. He also noted evolving refining dynamics, with instances of product margins exceeding crude costs, reflecting heightened market unpredictability.
The remarks underscore the urgency for India to diversify its energy mix, strengthen domestic capabilities, and build resilience against external shocks in an increasingly uncertain global energy landscape.
