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India Prioritizes Household Gas Supply Amid Middle East Conflict Disruptions

The Indian government has invoked the Essential Commodities Act to secure the supply of piped natural gas for households and LPG for cooking amid disruptions caused by the Middle East conflict. The order mandates top priority for domestic PNG, transport CNG, and LPG production, ensuring 100% of their past six-month average consumption. Fertilizer plants are allocated 70% of their average gas supply, while industrial and commercial consumers will receive 80%. The directives aim to mitigate the impact of force majeure clauses invoked by suppliers due to shipping disruptions in the Strait of Hormuz.

Key Points: India Ensures Uninterrupted Gas Supply for Homes, Transport

  • PNG/LPG supply prioritized
  • CNG for transport secured
  • Fertilizer plants get 70% gas
  • Industrial users get 80% allocation
2 min read

Centre orders uninterrupted supply of piped natural gas, LPG for cooking (Lead)

Government orders priority supply of PNG, LPG, and CNG amid Middle East war disruptions. Fertilizer and industrial sectors see adjusted allocations.

"priority allocation shall be maintained... to 100 per cent of their average past six month average gas consumption - Government Order"

New Delhi, March 10

The Central government on Tuesday issued orders under the Essential Commodities Act to ensure uninterrupted supply of piped natural gas for household kitchens, LPG and CNG for transport on top priority amid disruption in supplies due to the ongoing war in the Middle East.

The Centre has assessed that the ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz and suppliers have invoked force majeure clauses which would entail diversion of natural gas to the priority sectors, the order states.

The order states that priority allocation shall be maintained, subject to operational availability, to 100 per cent of their average past six month average gas consumption for the supply of natural gas for domestic piped natural gas supply, compressed natural gas for transport, LPG production including LPG shrinkage requirements as well as pipeline compressor fuel and other essential pipeline operational requirements. This has been listed as priority sector 1.

The Centre has directed refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

The supply of natural gas to the fertiliser plants, which is listed as priority sector 2, shall ensure 70 per cent. of their past six month average gas consumption, subject to operational availability. The order also states that these units shall not use the gas supply for any other purpose except in the production of fertilizers and a certificate to this effect shall be furnished to the Petroleum Planning and Analysis Cell (hereinafter referred to as the "PPAC") through the Ministry of Fertiliser, the order states.

The gas marketing entities will also ensure that gas supply to tea industries, manufacturing and other industrial consumers, listed as priority sector 1, are supplied through the national gas grid and maintained at 80 per cent of their past six month average gas consumption subject to operational availability.

Further, City Gas Distribution (CGD) entities shall ensure that industrial and commercial consumers supplied through their networks receive 80 per cent of their past six month average gas consumption subject to operational availability, the order added.

- IANS

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Reader Comments

R
Rohit P
Good step, but implementation is key. Hope the gas companies follow these orders properly and there is no black marketing or artificial shortage created. The priority for households and transport (CNG) makes sense.
A
Aman W
What about the price? Will the subsidy on LPG cylinders continue? The order talks about supply, but if the international prices shoot up due to the war, will the common man bear the cost? Need more details on that.
S
Sarah B
It's a responsible decision to prioritize essential sectors. The 70% allocation to fertilizer plants is also crucial to protect our agricultural output. A balanced approach during a global crisis.
V
Vikram M
This shows why we need to reduce our dependence on imported energy. Hope this crisis accelerates our shift to renewables and domestic gas exploration. Jai Hind!
K
Karthik V
With respect, while the priority list is good, I'm concerned about the "subject to operational availability" clause. It leaves a big loophole. The government must monitor this strictly to prevent misuse by corporates.

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