{"id":92169,"date":"2026-03-11T11:47:19","date_gmt":"2026-03-11T06:17:19","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=92169"},"modified":"2026-03-11T13:50:34","modified_gmt":"2026-03-11T08:20:34","slug":"prioritising-natural-gas-supplies-amid-west-asia-crisis","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/prioritising-natural-gas-supplies-amid-west-asia-crisis\/","title":{"rendered":"Prioritising Natural Gas Supplies Amid West Asia Crisis"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>Prioritising Natural Gas Supplies Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ongoing conflict in West Asia and the disruption of maritime traffic through the Strait of Hormuz have significantly affected Liquefied Natural Gas (LNG) supplies to India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To manage the supply shock and protect essential consumer sectors, the Government of India has invoked emergency powers under the Essential Commodities Act, 1955 to <\/span><b>regulate and prioritise<\/b><span style=\"font-weight: 400;\"> the allocation of natural gas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of Petroleum and Natural Gas (MoPNG) has issued an order diverting gas supplies to \u201cpriority sectors\u201d such as households and transportation while curtailing supplies to certain industrial sectors.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Strait of Hormuz Disruption<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Strait of Hormuz, a narrow waterway between <\/span><b>Iran and Oman<\/b><span style=\"font-weight: 400;\">, connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is one of the most critical <\/span><b>energy chokepoints<\/b><span style=\"font-weight: 400;\"> in the world, as it handles about one-fifth of global liquid petroleum consumption and LNG trade.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Over 50% of India\u2019s LNG imports from countries such as Qatar and the UAE transit through this route. Cargoes moving through the Strait account for about 30% of India\u2019s total gas consumption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With Iran warning ships against transit and attacks reported on vessels, maritime <\/span><b>movement <\/b><span style=\"font-weight: 400;\">has nearly <\/span><b>halted<\/b><span style=\"font-weight: 400;\">, disrupting LNG shipments to India.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>India\u2019s Dependence on Imported Gas<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s energy system is significantly dependent on imported natural gas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Out of the total gas demand of about 190 million standard cubic metres per day (mscmd), around 50% of this demand is met through <\/span><b>LNG <\/b><span style=\"font-weight: 400;\">imports.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LPG <\/b><span style=\"font-weight: 400;\">imports meet nearly 60% of India\u2019s requirement. Over 80% of LPG imports also pass through the Strait of Hormuz.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Thus, geopolitical disruptions in West Asia have <\/span><b>direct implications<\/b><span style=\"font-weight: 400;\"> for India\u2019s energy security.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Government Measures to Manage the Gas Shortage<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Invocation of the Essential Commodities Act: <\/b><span style=\"font-weight: 400;\">The government used emergency powers to regulate gas distribution, ensuring essential sectors receive adequate supplies while shifting the shortage burden to non-priority sectors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Four-tier priority allocation system:<\/b><span style=\"font-weight: 400;\"> The MoPNG created a four-category priority system based on average gas consumption over the past six months.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Priority Category I<\/b><span style=\"font-weight: 400;\"> \u2013 100% supply, due to their direct impact on citizens &#8211; PNG (Piped Natural Gas) for households, CNG for the transport sector, gas used for LPG production, gas required for essential pipeline operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Priority Category II<\/b><span style=\"font-weight: 400;\"> \u2013 70% supply. <\/span><b>Fertiliser plants<\/b><span style=\"font-weight: 400;\"> &#8211; Gas allocation is strictly restricted for fertiliser production only, and units must certify compliance through the Petroleum Planning and Analysis Cell (PPAC).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Priority Category III<\/b><span style=\"font-weight: 400;\"> \u2013 80% supply. <\/span><b>Tea <\/b><span style=\"font-weight: 400;\">industries, manufacturing and other industrial consumers connected to the national gas grid.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Priority Category IV<\/b><span style=\"font-weight: 400;\"> \u2013 80% supply. Commercial and industrial consumers supplied through City Gas Distribution (CGD) networks.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Curtailment of Gas to Non-Priority Sectors<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To divert gas to essential sectors, supply to following industrial users has been reduced &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Petrochemical units<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Gas-based power plants<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Domestic gas consumers from difficult blocks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Refineries, whose gas supply has been reduced to 65% of their recent average consumption<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The public sector company <\/span><b>GAIL <\/b><span style=\"font-weight: 400;\">has been tasked with managing these allocations.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Measures to Secure Supply<\/b><\/h2>\n<ul>\n<li><b>Increase in domestic LPG production:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The government directed refiners to maximise LPG output by using propane and butane streams. This has led to a <\/span><b>10% rise <\/b><span style=\"font-weight: 400;\">in LPG production.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Private companies such as Reliance Industries Limited (RIL) have also pledged to increase LPG output from the Jamnagar refining complex.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Prioritisation of domestic consumers:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India has over <\/span><b>33 crore<\/b><span style=\"font-weight: 400;\"> domestic LPG consumers, making uninterrupted household supply a top priority.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Measures include:<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">Prioritising domestic LPG over commercial LPG users (e.g., hotels and restaurants).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Increasing the minimum refill booking gap from 21 days to <\/span><b>25 days<\/b><span style=\"font-weight: 400;\"> to prevent hoarding.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Ensuring daily distribution of about 60 lakh LPG cylinders, unchanged from pre-crisis levels.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">A three-member committee of oil marketing company executives has been formed to review requests from commercial LPG consumers and allocate supplies where feasible.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Diversifying LNG imports:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">India is attempting to source LNG from alternative suppliers such as <\/span><b>Norway and the United States.<\/b><\/li>\n<li><span style=\"font-weight: 400;\">However, diversification faces logistical constraints like shipping time from these countries is around two months, and LNG prices have surged from $6\u20138 per MMBtu to about $15 per MMBtu.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Despite higher costs, imports from distant markets become economically viable once prices exceed $10 per MMBtu.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Challenges and Way Ahead<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Geopolitical vulnerability: <\/b><span style=\"font-weight: 400;\">Heavy dependence on West Asian energy supplies exposes India to disruptions during regional conflicts.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Diversification<\/b><span style=\"font-weight: 400;\">: India should expand LNG supply agreements with countries such as <\/span><b>Australia<\/b><span style=\"font-weight: 400;\">, the U.S., and <\/span><b>African <\/b><span style=\"font-weight: 400;\">producers to reduce reliance on West Asia.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Chokepoint risk: <\/b><span style=\"font-weight: 400;\">Reliance on the Strait of Hormuz makes India vulnerable to maritime security disruptions.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Creation of strategic gas <\/span><b>reserves <\/b><span style=\"font-weight: 400;\">similar to petroleum reserves could cushion temporary disruptions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limited domestic gas production: <\/b><span style=\"font-weight: 400;\">Domestic gas output is insufficient to meet rising demand.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Encouraging <\/span><b>exploration <\/b><span style=\"font-weight: 400;\">in deepwater, ultra-deepwater, and difficult basins can increase indigenous gas output.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Time lag in diversification<\/b><span style=\"font-weight: 400;\">: Alternative LNG imports from distant countries involve long shipping lead times.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India must <\/span><b>strengthen partnerships<\/b><span style=\"font-weight: 400;\"> through long-term contracts and multilateral energy cooperation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Industrial disruption<\/b><span style=\"font-weight: 400;\">: Curtailing supplies to industries like petrochemicals and power plants may affect production and economic activity.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Accelerating solar, wind, and green hydrogen initiatives can reduce dependence on fossil fuels.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Conclusion<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The disruption of LNG supplies due to the West Asia conflict highlights the <\/span><b>fragility <\/b><span style=\"font-weight: 400;\">of global energy supply chains and India\u2019s vulnerability to geopolitical shocks.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The crisis underscores the urgent need for energy diversification, domestic production enhancement, and resilient supply chains to ensure long-term energy security for India.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/indias-lng-lpg-shortage-to-be-short-lived-as-new-supply-routes-domestic-production-kick-in\/article70726993.ece#:~:text=India&#039;s%20current%20natural%20gas%20supply,viable%2C%20according%20to%20government%20sources.\" target=\"_blank\" rel=\"nofollow noopener\"><b>TH<\/b><\/a><b>\u00a0| <\/b><a href=\"https:\/\/indianexpress.com\/article\/business\/west-asia-conflict-strait-of-hormuz-lng-supply-essential-commodities-act-gas-cng-png-priority-list-10574761\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid the West Asia crisis, the Government of India has invoked emergency powers under the Essential Commodities Act, 1955 to prioritise natural gas supplies.<\/p>\n","protected":false},"author":19,"featured_media":92155,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[6000],"class_list":{"0":"post-92169","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-prioritising-natural-gas-supplies","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/92169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=92169"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/92169\/revisions"}],"predecessor-version":[{"id":92190,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/92169\/revisions\/92190"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/92155"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=92169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=92169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=92169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}