HPCL Eyes LNG Sourcing beyond Middle East

Hindustan Petroleum Corp (HPCL) is evaluating liquefied natural gas (LNG) sourcing opportunities from North America, Africa and Australia as it seeks to reduce its dependence on the Middle East and diversify its gas supply base amid continued disruptions in West Asia.

The company currently sources 47 percent of its LNG from the Middle East, while Qatar is its largest supplier. HPCL Executive Director, Natural Gas Anuj Mehrotra said that recent developments in the region have reinforced the need for a more diversified and flexible procurement strategy.

“Going forward, diversification will be a deliberate part of our procurement strategy. We will look at sourcing opportunities from geographies such as North America, Africa, and Australia, among others, to reduce regional concentration risk. We will also continue to leverage Chhara, greenfield liquefied natural gas storage and regasification facility located in Gujarat, to develop and explore additional domestic gas opportunities wherever feasible,” Mehrotra said.

HPCL’s LNG portfolio combines long-term contracts with spot procurement, while the company is also exploring domestic gas opportunities. “We also see Compressed Biogas (CBG) and other renewable gases as complementary sources of energy. So, our objective is not simply to secure more LNG, but to build a resilient portfolio combining long-term LNG, spot procurement, multiple sourcing geographies, domestic gas and renewable gas,” he said.

India imports nearly 60 percent of its total LNG from the Middle East, with Qatar accounting for 47 percent. The company’s diversification plans come as the blockade of the Strait of Hormuz has disrupted gas supplies from the region.