India needs multi-route energy strategy, say experts

India must develop a multi-route energy strategy, according to experts, as tensions in West Asia threaten its energy security. The recent conflict between Saudi Arabia and Houthi rebels in Yemen has disrupted energy supplies through the Strait of Hormuz, which carries about a fifth of global energy. India relies heavily on imported oil and gas, with 42% of its primary energy needs imported in 2024-25. Its dependence on crude oil imports is particularly high at 89%, and natural gas imports at 49%.

Experts emphasize that India needs to diversify its energy suppliers and expand storage and port infrastructure to counter the risks posed by the region's instability. However, they also note that alternative routes and suppliers cannot fully replace Gulf supplies in the near term due to higher costs, longer transit times, and compatibility issues.

The UAE and Oman could provide additional resilience for India's energy supply chains. The UAE's Fujairah port is outside the Strait of Hormuz and serves as an important oil storage and bunkering center. Oman's ports, such as Duqm, Salalah, Sur, and Muscat, could also support alternative maritime routes, although they still face exposure to the Strait of Hormuz for Persian Gulf-origin supplies.

To safeguard its energy security, India needs to adopt a multi-pronged approach. This includes diversifying crude purchases across more than 40 countries, exploring short-term rerouting options through the Mediterranean Sea, and expanding strategic petroleum reserves (SPRs) and commercial inventories. However, experts caution that moving away from Gulf supplies could lead to higher costs and longer transit times.