Centre invokes Essential Commodities Act to prioritise natural gas allocation to certain sectors

India’s natural gas consumption at present is 195 million metric standard cubic metres per day, of which it imports half of its requirements. File (Representational image only)

India’s natural gas consumption at the second is 195 million metric long-established cubic metres per day, of which it imports half of of its requirements. File (Representational image handiest)
| Photo Credit: B. Jothi Ramalingam

Invoking the Very necessary Commodities Act, 1955, the Ministry of Petroleum and Pure Gas (MoPNG) has sought diverting natural gas to obvious precedence sectors with a tiered structure.

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In a gazette notification dated March 9, the Ministry underlined domestic piped natural gas (PNG), Compressed Pure Gas (CNG) for vehicular gasoline, and Liquified Petroleum Gas (LPG) production alongside fertilizer manufacturing, tea industries, manufacturing and other industrial patrons, amongst the precedence sectors.

The gazette underlined the precedence allocation used to be mandated in light of disruption of LNG shipments routed thru the Strait of Hormuz, and Indian suppliers obligated to invoked compelled majeure as a result of the continuing tensions in West Asia. For the time being, about 30% of India’s natural gas requirements are routed thru the Strait of Hormuz.

Earlier this week, the authorities had invoked the Very necessary Commodities Act for prioritising LPG present to domestic patrons.

Structured allocation

The gazette notification supplied tiered allocation priorities to each and every of these sectors. As an illustration, domestic piped natural gas present, CNG for transport and LPG production, amongst others, have been accorded for “precedence allocation” with supplies to be upheld uninterrupted at “hundred per cent”, field to operational availability. This could be premised on their life like consumption from the previous six months.

Equally, fertilizers’ vegetation would be supplied 70% of their consumption requirements, premised on their life like consumption in the previous six months.

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Additional, gas marketing companies have been asked to carry out obvious industries, manufacturing and other industrial patrons, supplied thru the natural gas grid, secure eighty per cent of their requirements beneath the structure. Moreover, CGDs have been asked to carry out obvious industrial and commercial patrons furthermore secure the similar present.

The gazette extra states that the redistribution would be facilitated thru “stout or partial curtailment” of gas being supplied to ONGC Petrol additions Small, GAIL Pata Petrochemical and Reliance O2C, amongst others. “The oil refining companies shall soak up the affect of LNG present disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty 5 per cent. of the past six months’ gas consumption, field to operational feasibility,” the gazette be taught.

India’s natural gas consumption at the second is 195 million metric long-established cubic metres per day (MMSCMD), of which it imports half of of its requirements.

Printed – March 10, 2026 01:34 pm IST

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