The Union government on Monday invoked the Essential Commodities Act, directing refineries to regulate the production, supply and distribution of natural gas in the country following disruptions due to the West Asia conflict.

In its order, the Ministry of Petroleum and Natural Gas stated that the conflict has affected liquefied natural gas shipments through the Strait of Hormuz.

The narrow waterbody connects the Gulf to the Arabian Sea. About 20% of global petroleum liquids consumption traverses the maritime chokepoint.

In view of this, the ministry stated that the supply of natural gas to several sectors will be treated as a priority allocation. The sectors include domestic piped natural gas, compressed natural gas for transport, liquefied petroleum gas production and pipeline compressor fuel.

It also directed that fertiliser plants should be supplied with natural gas to the extent of 70% of their past six months’ average gas consumption, subject to operational availability.

The ministry has directed city gas distribution entities to ensure that gas is supplied to industrial and commercial consumers to the extent of 80% of their past six months’ average consumption.

Gas marketing agencies also have to ensure 80% supply to tea industries, manufacturing and other industrial consumers who receive supplies from the national gas grid.

The ministry said that the Gas Authority...

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