India to import more crude oil from Qatar: Jaipal Reddy.

NEW DELHI: Iran India is looking at importing more liquefied natural gas from (LNG) from Qatar and planning to step up crude oil imports from the country to meet growing energy needs, oil minister S Jaipal Reddy said.

"I would like to acknowledge Qatar's growing importance in India's energy security matrix not only in respect of LNG but also crude oil and LPG (liquefied petroleum gas)," Reddy said on Monday after a meeting with visiting Qatari energy minister Mohammad Bin Saleh Al Sada.

India imported 5.6 million tonne of crude oil from Qatar and wants to increase the quantity because of supply uncertainty due to US and EU sanctions against Iran. Iran is India's second biggest crude oil supplier after Saudi Arabia and Indian government have decided not to stop import of Iranian crude oil under pressure from the US and EU.

Domestic oil companies have, however, reduced Iranian crude oil imports to about 13 million tonne per annum from about 21 MT about three years ago and looking for alternative sources. "In the years ahead, with our energy demands growing rapidly, we look to Qatar for larger quantities of not only LNG but crude oil and LPG as well," Reddy said.

Qatar is the world's biggest LNG supplier with 77 million tonne a year capacity. Qatari minister allay fears of any supply disruption and said that oil producers were "committed" for supply-demand balance.

"There is no imminent shortage (of crude oil) anywhere," he said. "Geo-political and other factors have contributed to current prices," he added.

Source : economictimes.indiatimes.com