Centre Invokes Essential Commodities Act to Regulate Natural Gas Supply Amid West Asia Tensions

Amid the prevailing situation in West Asia, the Government has invoked the Essential Commodities Act 1955 to regulate the production, maintain supply, equitable distribution and availability of natural gas for priority sectors. As per a notification of the Petroleum and Natural Gas Ministry, the priority of supply of natural gas has been given to sectors including Domestic Piped Natural Gas Supply, Compressed Natural Gas for Transport, LPG production, including LPG shrinkage requirements and Pipeline Compressor fuel and other essential pipeline operational requirements. It said that the supply shall be maintained subject to operational availability to 100 per cent of their past six month average gas consumption.
The order further states that the government shall ensure the supply of natural gas to the fertiliser plants on 70 per cent of their past six-month average gas consumption, subject to operational availability. It added that gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at 80 per cent of their past six-month average gas consumption, subject to operational availability.
The order also said that all City Gas Distribution entities shall ensure that industrial and commercial consumers supplied through their networks receive 80 per cent of their past six-month average gas consumption, subject to operational availability.
