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LNG curbs removed as gas supply eases

LNG curbs removed as gas supply eases

NEW DELHI: Centre on Saturday revoked the emergency natural gas supply restrictions imposed in March during the West Asia conflict, restoring normal gas allocation to fertiliser plants, refineries, city gas distributors and industrial consumers as the ceasefire eased concerns over disruption of LNG shipments through Strait of Hormuz.Saturday’s decision follows a series of steps taken by govt over past 10 days to roll back emergency measures introduced during the conflict. These include restoration of commercial LPG supplies to pre-conflict levels, the lifting of restrictions on sale of petrol and diesel to commercial consumers from retail outlets, removal of the 200-litre cap on diesel purchases and a reduction in commercial LPG and ATF prices, indicating a gradual normalisation of the country’s energy supply situation.A gazette notification issued by petroleum ministry withdrew Natural Gas (Supply Regulation) Order, 2026, saying the conflict that had disrupted LNG shipments through Strait of Hormuz is now under a ceasefire, negotiations are underway and sea traffic through the strategic waterway has resumed.The emergency order, issued on March 9 under Essential Commodities Act, had empowered govt to regulate production, sector-wise allocation and diversion of natural gas supplies after suppliers invoked force majeure clauses and cargoes were diverted due to the conflict in West Asia. Under the order, full supplies of domestic piped natural gas (PNG), compressed natural gas (CNG) for transport and LPG were maintained, while gas allocation to fertiliser plants, refineries and industrial and commercial consumers was curtailed to ensure availability for priority sectors.Saturday’s notification revokes the March-9 order in its entirety.India imports nearly half of its natural gas requirements, with more than half of its LNG imports typically transiting through Strait of Hormuz, making the waterway critical for the country’s energy security.

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