Hormuz disruptions push govt to prioritise domestic gas supply
CNG, LPG get priority in supply shake-up | Fertiliser, industry get limited gas
image for illustrative purpose
New Delhi: Amid disruptions to imported gas supplies due to the widening West Asia conflict, the Centre has revised the priority order for allocating domestically produced natural gas, placing LPG production along with CNG and piped cooking gas for households at the top.
The government on Tuesday issued directions under the Essential Commodities Act (ECA) to ensure uninterrupted supply of piped natural gas (PNG) for household kitchens, compressed natural gas (CNG) for transport and liquefied petroleum gas (LPG) production.
Under the revised allocation order, these sectors will receive 100 per cent of their average gas consumption of the past six months, subject to operational availability. The move is aimed at ensuring uninterrupted cooking fuel supply and transport fuel availability during the ongoing supply disruption.
India consumes about 191 million standard cubic metres per day (mmscmd) of natural gas, nearly half of which is met through domestic production. The remainder is imported as liquefied natural gas (LNG), a significant portion of which passes through the Strait of Hormuz, a key global energy shipping route.
Escalating tensions in West Asia have disrupted LNG shipments, with some suppliers invoking force majeure clauses, prompting the government to divert domestically produced gas to priority sectors.
The fertiliser sector has been placed second in the priority list and will receive at least 70 per cent of its average gas demand of the past six months, ensuring continued production of crop nutrients. Fertiliser plants have also been directed to use the gas strictly for fertiliser production and submit compliance certificates to the Petroleum Planning and Analysis Cell (PPAC).
Industrial consumers such as the tea industry, manufacturing units and other factories connected to the national gas grid have been placed in the third category and will receive around 80 per cent of their recent average gas consumption, subject to availability.
City gas distribution networks supplying commercial and industrial consumers have been placed in the fourth category, also receiving up to 80 per cent of their average consumption. The Centre has also directed refineries and petrochemical units to maximise LPG production and divert key hydrocarbon streams to the LPG pool to boost availability.
