Central Government Ensures Steady Supply of Natural Gas and LPG Amid Middle East Crisis
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Key Takeaways
New Delhi, March 10 (NationPress) On Tuesday, the Central government enacted measures under the Essential Commodities Act (ECA) to guarantee a stable supply of piped natural gas for home kitchens, LPG, and CNG for transportation, prioritizing these amid supply interruptions caused by the ongoing conflict in the Middle East.
The Centre has determined that the current unrest in the Middle East has led to a disruption in liquefied natural gas deliveries via the Strait of Hormuz. Suppliers are invoking force majeure clauses, resulting in the redirection of natural gas to priority sectors, as outlined in the order.
According to the order, priority allocation will be upheld—subject to operational availability—ensuring that 100% of the average gas consumption over the past six months is met for natural gas supplied to households, compressed natural gas for vehicles, LPG production (including LPG shrinkage needs), as well as pipeline compressor fuel and other vital operational requirements. This is categorized as priority sector 1.
The Centre has instructed refineries and petrochemical facilities to optimize the production of liquefied petroleum gas (LPG) and reroute essential hydrocarbon streams to the LPG pool.
The supply of natural gas to fertilizer plants, designated as priority sector 2, will ensure that these facilities receive 70% of their average gas consumption from the past six months, contingent on operational availability. These plants are mandated to utilize the gas exclusively for fertilizer production, with compliance certificates to be submitted to the Petroleum Planning and Analysis Cell (PPAC) through the Ministry of Fertilizers, as stated in the order.
Furthermore, gas marketing companies are required to maintain a supply to tea industries, manufacturing, and other industrial consumers—classified under priority sector 1—through the national gas grid, ensuring 80% of their past six months average gas consumption, dependent on operational availability.
Additionally, City Gas Distribution (CGD) entities must ensure that both industrial and commercial consumers connected to their networks receive 80% of their average gas consumption from the previous six months, as stipulated by the order.