India Moves to Regulate Gas Supply For Priority Sectors Amid West Asia Conflict

NEW DELHI, March 11 — India has issued an order to “ensure equitable distribution and continued availability” of natural gas for priority sectors amid the impact of the West Asia conflict on energy supplies.

Anadolu Ajansı reported that an order issued last night by the Petroleum and Natural Gas Ministry said the government has assessed that the ongoing conflict in West Asia has disrupted liquefied natural gas shipments.

“In order to ensure equitable distribution and continued availability of natural gas for priority sectors,” the government considers it “necessary to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including liquefied natural gas (LNG) and re-gassified LNG,” the order said.

The government has also mentioned distribution in accordance with four priority areas.

The first priority sector will receive 100 per cent of the average gas consumption of the past six months, to include domestic piped natural gas supply, compressed natural gas for transport, LPG (liquefied petroleum gas) production, including LPG shrinkage requirements and pipeline compressor fuel, as well as other essential pipeline operational requirements.

The other priority areas include gas supply to tea industries, manufacturing, and other industrial consumers, as well as fertiliser plants.

The order by the Indian government comes as hotel and restaurant industry bodies in various Indian cities have flagged the shortage of commercial cooking gas cylinders.

Regional tensions have escalated since Israel and the United States launched joint strikes on Iran on February 28, which have so far killed around 1,300 people, including Supreme Leader Ayatollah Ali Khamenei.

Iran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and several Gulf countries hosting US military assets.

Iran also effectively closed the Strait of Hormuz around March 1. The strategic waterway normally handles about 20 million barrels of oil shipments daily and roughly 20 per cent of the global liquefied natural gas trade.