The Central government has issued orders under the Essential Commodities Act to prioritize the supply of piped natural gas, LPG, and CNG amidst disruptions caused by the ongoing conflict in the Middle East. Due to the disturbance in liquefied natural gas shipments through the Strait of Hormuz, suppliers have activated force majeure clauses, leading to the redirection of natural gas to critical sectors.
To maintain essential services, the government has mandated that 100% of the average past six-month gas consumption be allocated to domestic piped natural gas, compressed natural gas for transport, LPG production, and other vital operational needs. Refineries and petrochemical units are instructed to increase LPG production and channel key hydrocarbon streams to the LPG pool.
Furthermore, the order emphasizes that 70% of the past six-month average gas consumption for fertiliser plants must be ensured, with gas supply strictly dedicated to fertilizer production. Gas marketing entities are directed to provide 80% of the past six-month average gas consumption to tea industries, manufacturing, and other industrial consumers through the national gas grid.
City Gas Distribution (CGD) entities are tasked with guaranteeing that industrial and commercial consumers supplied through their networks receive 80% of their past six-month average gas consumption to maintain operational continuity.
