Centre prioritises LPG, CNG and PNG in revised gas allocation order

The Centre has revised the priority order for allocating domestically produced natural gas amid disruptions to imported supplies caused by the escalating West Asia conflict Under the new framework the government has placed LPG production compressed natural gas CNG for vehicles and piped natural gas PNG for household cooking at the top of the allocation list reported news agency PTIThe revised order issued through a gazette notification aims to ensure uninterrupted supply of cooking fuel and transport gas as global energy markets face volatility due to the ongoing geopolitical tensions in the Middle EastLPG CNG and household cooking gas given top priorityAccording to the notification the supply of natural gas for domestic PNG connections CNG used in transport and LPG production will now receive the highest priority reported PTIThese sectors will be supplied 100 per cent of their average gas consumption over the past six months ensuring that household cooking fuel and transport needs remain unaffected despite global supply disruptionsPipeline compressor fuel and other operational requirements of gas pipelines have also been included in this toppriority category as uninterrupted gas supply is essential for maintaining pipeline operations reported PTIThe revised allocation aims to safeguard critical energy needs of households and the transport sector while managing limited domestic gas suppliesFertiliser sector placed second in allocation orderUnder the revised policy fertiliser plants have been placed second in the priority listThe government said these facilities will receive at least 70 per cent of their average natural gas consumption recorded over the past six months subject to operational availabilityAuthorities clarified that gas allocated to fertiliser plants must be used strictly for fertiliser production and cannot be diverted to other purposes or transferred between units reported PTIEnsuring steady gas supply to fertiliser units is considered crucial for maintaining agricultural productivity and supporting the countryrsquos food securityIndustrial sectors to receive limited supplyThe third priority category includes tea industries manufacturing units and other industrial consumers connected to the national gas gridThese sectors will receive around 80 per cent of their average gas consumption over the past six months depending on operational availabilityIndustrial and commercial consumers supplied through city gas distribution networks have been placed in the fourth priority category and will also receive up to 80 per cent of their average gas usage reported PTIThe revised supply structure aims to maintain industrial operations while prioritising essential sectorsSupply cuts expected for petrochemical plants and power unitsTo maintain supplies for priority sectors the government has decided to divert domestic natural gas by reducing allocations to certain industriesGas supply to petrochemical facilities such as those operated by ONGC Petro additions Limited GAIL India Limitedrsquos Pata Petrochemical Complex and Reliance Industriesrsquos oiltochemicals O2C operations may be curtailed reported PTIHighpressure and hightemperature gas consumers and some power plants could also face reduced allocations depending on availabilityAdditionally refineries may see their natural gas allocation reduced to roughly 65 per cent of their average consumption over the past six months with oil refining companies expected to absorb part of the impact of supply disruptionsStrait of Hormuz disruptions trigger supply concernsThe decision to revise the gas allocation order follows disruptions in liquefied natural gas LNG shipments caused by the intensifying conflict in West AsiaFollowing recent military strikes and retaliatory attacks involving Iran maritime traffic through the Strait of Hormuz has declined sharplyThe waterway handles roughly onefifth of the worldrsquos seaborne oil shipments and nearly onethird of global LNG trade making it a critical energy corridor for many countries including India reported PTISince a large portion of Indiarsquos LNG and LPG imports transit through this route disruptions in tanker movement have raised concerns about energy suppliesGovt aims to ensure equitable gas distributionOfficials said the revised gas allocation system is intended to maintain stable supplies of natural gas while ensuring equitable distribution among sectorsThe government noted that the ongoing conflict in the Middle East has led to disruptions in LNG shipments with some suppliers invoking force majeure clauses reported PTITo implement the revised priority order staterun gas utility GAIL India Limited has been tasked with managing natural gas distribution across sectors and ensuring compliance with the allocation frameworkThe move is part of broader efforts by the government to secure essential energy supplies for households transport and critical industries during a period of heightened global energy uncertaintyWith inputs from PTI