Centre prioritises household and transport gas supply amid Middle East crisis

The Central government has invoked the Essential Commodities Act to prioritise uninterrupted supply of piped natural gas for households, LPG, and CNG for transport amid disruptions caused by the Middle East conflict.

New Delhi: The Central government on Tuesday issued orders under the Essential Commodities Act (ECA) to ensure uninterrupted supply of piped natural gas for household kitchens, LPG and CNG for transport on top priority amid disruption in supplies due to the ongoing war in the Middle East.

The Centre has assessed that the ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz and suppliers have invoked force majeure clauses which would entail diversion of natural gas to the priority sectors, the order states.

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The order states that priority allocation shall be maintained, subject to operational availability, to 100 per cent of their average past six month average gas consumption for the supply of natural gas for domestic piped natural gas supply, compressed natural gas for transport, LPG production including LPG shrinkage requirements as well as pipeline compressor fuel and other essential pipeline operational requirements. This has been listed as priority sector 1.

The Centre has directed refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

The supply of natural gas to the fertiliser plants, which is listed as priority sector 2, shall ensure 70 per cent. of their past six month average gas consumption, subject to operational availability. The order also states that these units shall not use the gas supply for any other purpose except in the production of fertilizers and a certificate to this effect shall be furnished to the Petroleum Planning and Analysis Cell (hereinafter referred to as the “PPAC”) through the Ministry of Fertiliser, the order states.

The gas marketing entities will also ensure that gas supply to tea industries, manufacturing and other industrial consumers, listed as priority sector 1, are supplied through the national gas grid and maintained at 80 per cent of their past six month average gas consumption subject to operational availability.

Further, City Gas Distribution (CGD) entities shall ensure that industrial and commercial consumers supplied through their networks receive 80 per cent of their past six month average gas consumption subject to operational availability, the order added.