India has withdrawn emergency natural gas supply controls imposed during the West Asia conflict after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed after the US-Iran ceasefire.
The Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order on Saturday (4 July), removing key operational provisions that had prioritised gas distribution to essential sectors.
The gas supply curbs were one of three emergency measures the government introduced after energy supplies from the Gulf were threatened by the effective closure of the Strait of Hormuz, following US and Israeli strikes on Iran on 28 February and Tehran’s retaliatory attacks.
India imports around half of its natural gas needs, with nearly 65 per cent of its liquefied natural gas supplies coming from West Asia through the strategic waterway.
The March order had empowered the government to direct sector-wise allocation of domestic gas and imported LNG to ensure uninterrupted supplies to priority consumers after suppliers invoked force majeure clauses.
Under the emergency measures, supplies to piped natural gas households, compressed natural gas for transport, LPG production and pipeline operations were maintained at 100 per cent of their average consumption, while fertiliser plants received 70 per cent and industrial consumers 80 per cent of their requirements.
The government stated the emergency measures were no longer required, with negotiations underway and maritime traffic through the strategic waterway having resumed.
The other two emergency measures—directing refiners to maximise LPG production and restricting diesel sales to bulk consumers—have already been withdrawn as the supply situation normalised.
The US and Iran signed a memorandum of understanding on 17 June to extend their ceasefire for 60 days, including provisions to reopen the Strait of Hormuz through which about 20 per cent of global oil and liquefied natural gas passed before the February crisis.
India, the world’s third-largest oil importer, had faced supply disruptions after some LNG suppliers invoked force majeure during the West Asia crisis, prompting the emergency gas allocation system.
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