By Admin 
Middle East Tensions: The effect of increasing tension in Gulf countries can now reach directly to your kitchen. There is increased volatility in the global gas market due to the fear of obstruction in the Strait of Hormuz, one of the world’s most important energy routes. After the impact of LNG shipment through this sea route, there is pressure on gas prices in the international market, due to which LNG may become expensive in the future.
Crisis on LNG?
LNG is very important for PNG used in domestic kitchens and CNG used in vehicles. In such a situation, if the supply of LNG is disrupted, it can have a direct impact on the prices of these fuels. About 20 million barrels of crude oil is supplied daily through the Strait of Hormuz, while more than 20 percent of the world’s total LNG trade passes through this route. Therefore, any kind of obstruction in this narrow sea route can give a big blow to the global energy market.
According to market experts, the increasing tension in West Asia is expected to have an impact on energy supply. Sumit Pokharna, Vice President of Fundamental Research, Kotak Securities, says that on one side are America and Israel and on the other side is Iran, due to which tension in the region has increased considerably. In this situation, the risk of damage to the regional energy infrastructure has also increased and this may disrupt the energy supply.
What do experts say?
Meanwhile, Iran’s military unit Islamic Revolutionary Guard Corps has warned that ships passing through the Strait of Hormuz may be targeted. Due to this, the possibility of stopping the energy supply through this important corridor has further increased. Although experts believe that it is difficult for this route to remain closed for a long time, but if it is affected even for a few weeks, then a big impact can be seen in the global energy market.
As far as the impact on India is concerned, about 50 to 55 percent of the crude oil and LNG supplied to the country is supplied through this route. In such a situation, if this transit route remains disrupted for a long time, India’s energy security may be seriously affected. India is largely dependent on Gulf countries for LNG. According to S&P Global data, India gets about 59 percent of the total LNG supply from Qatar and UAE.
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