LPG production, CNG, and piped cooking gas will take precedence over all other sectors using natural gas as the Government rejigged allocation to ensure uninterrupted supply for households and transport sectors. As the widening West Asia conflict disrupted 30 per cent of India’s gas supply, the oil ministry in a gazette notification ordered available gas to be diverted from non-priority sectors to key users. India meets half of its 191 million standard cubic metres per day (mmscmd) of gas consumption through imports. With the stalling of tanker movement through the Strait of Hormuz, about 60 mmscmd gas from the Middle East has been disrupted. The remaining liquefied natural gas (LNG) has been reprioritised to meet 100 per cent of demand of LPG production, CNG, and piped cooking gas (PNG), 80 per cent of commercial users of the fuel and 70 per cent of fertiliser unit needs. “We are monitoring the situation on a minute-to-minute basis and are alive to the evolving needs. We have just now reprioritised gas allocation to help meet the full demand of key sectors,” a top ministry official said. The re-allocation has been done to primarily augment LPG supplies that had been strained after the war in the Middle East disrupted half of the cooking gas supplies. Liquefied petroleum gas, or LPG, is primarily produced from the processing of natural gas and is also a byproduct of crude oil refining. It is made by separating and purifying propane and butane gases, which are then pressurised into a liquid state for easy transport and storage in steel cylinders typically seen in homes and restaurants for cooking. According to the gazette notification issued late on Monday, the latest order will override all outstanding contracts and other commercial arrangements for sale of LNG.

 

The freed gas will be allocated according to a priority list based on actual average usage over the past six months, the notification said. With LPG production from traditional stream at saturation levels, the Government has also previously ordered refineries to maximise output by diverting streams from petrochemicals. “There has been a 10 per cent increase in production following these measures,” the official said without giving more details. He said original contracts will be restored once normalcy returns. “We hope that happens soon,” he said. “In the meanwhile we have been out in the market sourcing as much supplies as we can. We have had some success and will continue to tap all available opportunities.” Until now, compressed natural gas (CNG) and piped cooking gas were the two priority sectors to receive domestic natural gas as their raw material. Under the revised allocation, requirements of LPG, CNG, and piped gas manufacturers will be fully met first before natural gas is supplied to other sectors. The supply of natural gas to domestic piped natural gas grid, CNG for transport, and LPG production shall be treated as priority allocation. They would be supplied 100 per cent of their average past six months’ gas consumption, the notification said. ensure Indian consumers don’t suffer, says PM: PRIME Minister Narendra Modi on Tuesday met some top Ministers and asked them to work together to ensure Indian consumers do not suffer from the impact of the West Asia conflict on the supply and price of petroleum products, sources said. Amid rising tensions in West Asia ever since the US and Israel attacked Iran, oil prices have risen substantially and there have been apprehensions about a possible shortage of petroleum products, including LPG, in India.