State-owned Indian Oil Corporation has begun stockpiling 15 days' supply of domestic cooking gas to meet contingencies like disruption in crude oil supplies in the event of war in Iraq.

IOC is importing 120,000 tonnes of LPG to tank up 360,000 tonnes by the end of this month, company sources said.

Contracts have already been placed with Saudi Arabia, Petronas of Malaysia and UAE for 65,000 tonnes of LPG and tenders for four more cargoes of LPG are likely this week.  

Sources said LPG stocks had fallen to just nine days' supply earlier this month following which government directives were sent to IOC to top up its tank besides asking LPG producers like Oil and Natural Gas Corporation and Gas Authority of India Ltd to increase their production.

LPG consumption in December 2002 was 717,900 tonnes.

As part of the contingency plan, the government has asked oil companies to top up their tanks to maintain 15 days crude stockpile and 45 days product in their tanks at all times.   Besides, they have been asked to place advance contracts and source crude oil from countries away from conflict zone.

IOC chairman M S Ramachandran had Thursday said that crude supplies to India were unlikely to be affected as key oil exporters neighbourng Iraq, namely Saudi Arabia and Kuwait have put in place alternative arrangements for regular supplies.

"Saudi Arabia has an oil loading terminal in Red Sea, which would be used in case war breaks out in Gulf while Kuwait will make deliveries under US security cover," he said.

Ramachandran said India does not have a government-to-government term crude oil supply contract and IOC and Bharat Petroleum Corporation buy close to 4 million tonnes of Iraqi crude.

"IOC buys 2 million barrels of Iraqi crude per month and we don't anticipate any problem in locating alternatives in case its supplies get disrupted," he said.

From the Middle-East, India imports 7.55 million tonnes of crude oil from Saudi Arabia, 7.13 million tonnes from Kuwait, 5.96 million tonnes from UAE and 4.7 million tones from Iran.

Other sources include Nigeria (13.17 million tonnes), Libya, Malaysia (2.09 million tonnes) and Egypt (1.14 million tonnes).