Opinion: India's Pipeline Solution Amidst Middle East Gas Crisis
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Middle East Gas Crisis: Pipeline Alternative for India Amidst Gulf War Escalation
M
Moneycontrol•17-03-2026, 15:35
Middle East Gas Crisis: Pipeline Alternative for India Amidst Gulf War Escalation
•The Gulf region war, initiated by Israel and the US against Iran, has severely impacted global oil and LNG supplies, with the closure of the Hormuz Strait causing a 20% loss in both.
•Key infrastructure, including Saudi ARAMCO's Ras Tanura refinery and Qatar's Ras Laffan LNG plant, were attacked, leading to a significant price hike in oil and LNG markets.
•India faces high energy vulnerability, importing 30% of its crude oil, 25% of LNG, and 60% of LPG from the Gulf region, with current shipping through Hormuz requiring individual negotiation.
•The closure of the Hormuz Strait is exacerbated by major insurers halting war risk coverage, making the situation more critical than previous crises like the Red Sea Houthi attacks.
•A proposed Middle East to India Deep Water Pipeline (MEIDP) offers a cheaper and less geopolitically exposed alternative for India's gas supply, with feasibility and financial viability confirmed.