Forest Services
Deployment Overview and Strategic Context
In early 2024, an empty LNG ship departed from Dahej LNG terminal in Gujarat, India, heading towards the UAE’s Das Island for loading. The vessel’s route passes through the Strait of Hormuz, a critical maritime chokepoint connecting the Arabian Sea with the Persian Gulf. This movement exemplifies India’s strategic intent to diversify its LNG sourcing and strengthen maritime security in a geopolitically volatile region. The operation involves key players such as Petronet LNG Limited (PLL) and the Abu Dhabi National Oil Company (ADNOC), underscoring bilateral energy cooperation.
- Dahej terminal capacity: 17 MMTPA (Petronet LNG Annual Report 2023)
- Das Island LNG export capacity: 21 MMTPA (ADNOC 2023 report)
- Strait of Hormuz handles ~21 million barrels/day (~21% global petroleum liquids) (U.S. EIA 2023)
- India’s LNG import dependency: ~50% of total gas consumption (Economic Survey 2023-24)
Legal and Regulatory Framework Governing LNG Shipping and Maritime Zones
India’s maritime and LNG operations are regulated by a layered legal framework. The Maritime Zones of India (Regulation of Fishing by Foreign Vessels) Act, 1981 governs maritime jurisdiction, while port operations at Dahej fall under the Indian Ports Act, 1908. Licensing for LNG import and export is overseen by the Petroleum and Natural Gas Regulatory Board Act, 2006 (Sections 11 and 12). Shipping operations comply with the Indian Merchant Shipping Act, 1958. Internationally, navigation rights through the Strait of Hormuz are protected under the United Nations Convention on the Law of the Sea (UNCLOS) 1982, ratified by India, ensuring freedom of passage through this strategic chokepoint.
- Dahej port operations regulated under Indian Ports Act, 1908
- LNG import/export licensing: Petroleum and Natural Gas Regulatory Board Act, 2006 (Sections 11, 12)
- Shipping safety and compliance: Indian Merchant Shipping Act, 1958
- Navigation rights in Strait of Hormuz: UNCLOS 1982 ratified by India
Economic Dimensions of LNG Trade via Dahej and Das Island
India’s LNG import bill stood at approximately USD 15 billion in FY2023, reflecting the country’s growing gas demand and import dependency. The Dahej terminal, operated by PLL, is a major LNG regasification hub with a capacity of 17 MMTPA. The UAE’s Das Island, managed by ADNOC, exports around 21 MMTPA of LNG, making it a significant supplier. The strategic use of Das Island as a loading point diversifies India’s LNG sourcing, reducing overreliance on traditional suppliers such as Qatar and Australia. The Strait of Hormuz remains a vital artery, facilitating nearly 3,000 LNG ship transits annually and handling about 21 million barrels per day of global oil trade.
- India’s LNG import dependency: ~50% of gas consumption (Economic Survey 2023-24)
- Dahej terminal capacity: 17 MMTPA (Petronet LNG Annual Report 2023)
- Das Island LNG export capacity: 21 MMTPA (ADNOC 2023 report)
- Strait of Hormuz: ~3,000 LNG ship transits/year (IEA 2023)
- India’s LNG import bill: USD 15 billion FY2023 (MoPNG)
Key Institutions Involved in LNG Operations and Maritime Security
The LNG supply chain from Dahej to Das Island involves multiple institutions. Petronet LNG Limited (PLL) operates the Dahej terminal, managing LNG imports and regasification. ADNOC controls LNG exports from Das Island. The Directorate General of Shipping (DGS) regulates shipping safety and compliance in Indian waters. Policy and regulation fall under the Ministry of Petroleum and Natural Gas (MoPNG). The Indian Navy plays a critical role in securing maritime routes in the Arabian Sea and the Strait of Hormuz, given the region’s geopolitical volatility. Globally, the International Maritime Organization (IMO) sets standards for navigation through strategic chokepoints.
- PLL: India’s largest LNG importer, Dahej terminal operator
- ADNOC: UAE state oil company, manages Das Island LNG exports
- DGS: Indian regulatory authority for shipping safety
- MoPNG: Petroleum sector policy and regulation
- Indian Navy: Maritime security in Arabian Sea and Strait of Hormuz
- IMO: International shipping standards and navigation rules
Comparative Analysis: India vs Japan LNG Import Strategies
| Aspect | India | Japan |
|---|---|---|
| LNG Import Dependency | ~50% of gas consumption | >90% of gas consumption |
| Primary LNG Suppliers | Diversified: UAE (Das Island), Qatar, Australia | Predominantly Middle East |
| Strategic Reserves | Developing strategic gas reserves | Maintains 44 days supply buffer (IEA 2023) |
| Vulnerability to Strait of Hormuz Disruptions | Moderate; improving diversification and naval presence | High; relies heavily on Strait of Hormuz |
| Pipeline Imports | Limited; mostly LNG imports | Significant pipeline imports supplement LNG |
Critical Infrastructure and Security Gaps
Despite diversification efforts, India’s LNG infrastructure and strategic reserves remain insufficient to withstand prolonged disruptions in the Strait of Hormuz. Unlike Japan and South Korea, which maintain substantial strategic reserves and diversified pipeline imports, India’s buffer stocks and alternative supply routes are limited. The Indian Navy’s increasing presence in the Arabian Sea partially mitigates maritime security risks, but geopolitical tensions around Iran and the Gulf region pose persistent threats. Enhancing LNG storage capacity, expanding strategic reserves, and securing alternative supply corridors are necessary to reduce vulnerability.
- India’s strategic gas reserves currently inadequate for prolonged Strait of Hormuz disruptions
- Limited pipeline connectivity compared to East Asian economies
- Geopolitical volatility around Iran and Gulf region increases risk
- Indian Navy’s maritime security role critical but challenged by scale
UPSC Relevance
- GS Paper 2: International Relations – India-UAE energy cooperation, maritime security in Arabian Sea
- GS Paper 3: Economic Development – Energy security, LNG import dependency, infrastructure
- GS Paper 1: Geography – Maritime chokepoints, Strait of Hormuz strategic significance
- Essay: Energy security and geopolitics of maritime trade routes
Way Forward: Enhancing India’s LNG Security and Maritime Posture
- Expand LNG storage and regasification infrastructure at Dahej and other terminals to build strategic reserves.
- Accelerate diversification of LNG suppliers beyond Middle East and Australia, including US and East Africa.
- Strengthen Indian Navy’s capabilities for persistent maritime domain awareness and escort in the Arabian Sea and Strait of Hormuz.
- Negotiate bilateral agreements for alternative maritime routes and pipeline connectivity with Central Asian and Southeast Asian partners.
- Enhance coordination between MoPNG, DGS, and maritime security agencies for integrated LNG supply chain security.
- It is governed under the United Nations Convention on the Law of the Sea (UNCLOS) 1982, ratified by India.
- The Strait of Hormuz facilitates nearly 21 million barrels per day of global oil trade.
- India has exclusive control over navigation rights in the Strait of Hormuz.
Which of the above statements is/are correct?
- Dahej LNG terminal is primarily an export terminal.
- Petronet LNG Limited operates the Dahej terminal.
- The Petroleum and Natural Gas Regulatory Board Act, 2006 governs LNG import/export licensing.
Which of the above statements is/are correct?
Jharkhand & JPSC Relevance
- JPSC Paper: GS Paper 2 (International Relations), GS Paper 3 (Energy Security)
- Jharkhand Angle: Jharkhand’s growing industrial sector depends increasingly on natural gas, making national LNG security relevant for state development.
- Mains Pointer: Frame answers linking India’s LNG supply chain vulnerabilities to Jharkhand’s energy needs, emphasizing diversification and infrastructure development.
What is the capacity of the Dahej LNG terminal?
The Dahej LNG terminal has a regasification capacity of 17 million metric tonnes per annum (MMTPA) as per Petronet LNG’s 2023 annual report.
Which Indian law governs LNG import and export licensing?
The Petroleum and Natural Gas Regulatory Board Act, 2006 (Sections 11 and 12) governs licensing for LNG import and export in India.
How significant is the Strait of Hormuz for global oil trade?
The Strait of Hormuz facilitates approximately 21 million barrels per day of global oil trade, accounting for about 21% of global petroleum liquids consumption (U.S. EIA 2023).
What role does the Indian Navy play in LNG shipping security?
The Indian Navy ensures maritime security in the Arabian Sea and the Strait of Hormuz, protecting LNG shipping routes against geopolitical threats and piracy.
How does India’s LNG import strategy differ from Japan’s?
India pursues diversified LNG sourcing including UAE’s Das Island, Qatar, and Australia, whereas Japan relies heavily (>90%) on Middle Eastern LNG imports but maintains larger strategic reserves (44 days supply).