Not cancelled any long-term contract for LNG or crude oil: Dharmendra Pradhan

By OEM Update Editorial May 15, 2020 12:57 pm IST

Indian energy companies have deferred some cargoes and spot bookings but not cancelled any long-term contracts for procuring Liquefied Natural Gas (LNG) or crude oil supplies, oil minister Dharmendra Pradhan said.

In a conversation with Daniel Yergin, Vice Chairman of research and consultancy firm IHS Markit, Pradhan said India has 5.3 million tonne (MT) of strategic storage capacity. “By mid-May it will be full. Apart from that, our companies have 7 MT of floating oil in their contracts. We have booked them, we have purchased them. With our domestic online capacity in crude oil or products we have storage of around 25 MT,” Pradhan said.He added India has around 38 MT of product and crude oil storage facility which is 18 per cent of the country’s annual energy requirement. Talking about the impact of Covid-19 on India’s oil and gas industry, the minister said Indian refiners are currently grappling with reduced demand and inventory losses.

“A few weeks back we decided to start our economic activities, transportation activities, industrial activities in the rural areas of the countryside and gradually we are edging out from the lockdown. Our demand is picking up,” Pradhan said.