New Delhi, March 10: The Central government has invoked provisions under the Essential Commodities Act to prioritise the supply of natural gas for key sectors amid disruptions in global shipments linked to the conflict in the Middle East.
According to the order issued on Tuesday, the government will ensure uninterrupted supply of piped natural gas (PNG) for households, compressed natural gas (CNG) for transport and LPG production, placing these under Priority Sector 1.
Authorities assessed that the ongoing conflict has disrupted liquefied natural gas shipments through the Strait of Hormuz, with some suppliers invoking force majeure clauses, prompting the government to reallocate natural gas supplies to essential sectors.
Under the directive, priority sectors will receive up to 100% of their average natural gas consumption over the past six months, subject to operational availability. The allocation covers domestic PNG supply, CNG for transport, LPG production requirements and fuel needed for pipeline operations.
The government has also instructed refineries and petrochemical companies to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG supply pool.
Natural gas supply to fertiliser plants, categorised as Priority Sector 2, will be maintained at 70% of their average consumption over the previous six months, with the gas strictly used for fertiliser production. Compliance certificates will be submitted to the Petroleum Planning and Analysis Cell through the Ministry of Fertiliser.
Additionally, gas marketing entities have been directed to ensure that industries such as tea processing, manufacturing and other industrial consumers connected to the national gas grid receive 80% of their average consumption over the past six months, subject to availability.
City Gas Distribution companies have also been asked to maintain 80% supply levels for industrial and commercial consumers connected to their networks to minimise disruptions.
The move is aimed at stabilising energy supplies and protecting essential sectors as global energy markets face volatility due to geopolitical tensions affecting key energy transit routes.
