New Delhi: The Central Government on Tuesday invoked the Essential Commodities Act (EC Act) to ensure uninterrupted availability of domestic cooking gas in view of the ongoing conflict in the Middle East, which has affected global oil and gas supply chains. The Centre has instructed refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams towards the LPG pool for domestic use.

According to the official order, supply of natural gas to certain sectors will be treated as priority allocation and maintained, subject to operational availability, at 100 per cent of their average consumption over the past six months. These priority sectors include domestic piped natural gas supply, compressed natural gas (CNG) for transport, LPG production including shrinkage requirements, pipeline compressor fuel, and other essential pipeline operational needs.

The order noted that the ongoing conflict in the Middle East has disrupted liquefied natural gas shipments through the Strait of Hormuz, with some suppliers invoking the force majeure clause, leading to diversion of natural gas to priority sectors.

The government has directed that fertilizer plants be supplied natural gas at 70 per cent of their average consumption over the past six months, subject to operational availability. Gas marketing entities have been asked to maintain supply at 80 per cent of the six-month average for tea industries, manufacturing units and other industrial consumers connected to the national gas grid. Similarly, City Gas Distribution companies must 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 feasibility.

Oil refining companies have been instructed to absorb the impact of LNG supply disruption as far as possible by reducing gas allocation to refineries to about 65 per cent of their six-month average consumption, depending on operational feasibility.

The order also directs every producer, importer, transporter, marketer and distributor of natural gas, including LNG and regasified LNG, to provide details of production, imports, stock, allocation, supply and consumption to the Central Government or authorised officials.

Under the Essential Commodities Act, 1955, essential commodities include drugs, fertilisers, foodstuffs, edible oils, petroleum and petroleum products including natural gas and LNG, seeds, jute, textiles and other items notified by the government.

The order applies to all entities involved in the natural gas supply chain, including domestic producers such as ONGC, Reliance Industries, Oil India and Vedanta; gas marketing companies like GAIL; LNG terminal operators; pipeline operators; and City Gas Distribution entities. To meet the requirements of priority sectors, the government may impose full or partial curtailment of gas supply to petrochemical units, high-pressure and high-temperature gas consumers, and power plants, if necessary.

In a separate direction, the Ministry of Petroleum and Natural Gas has asked oil refineries to increase LPG production in view of disruptions in the Strait of Hormuz and to channel the additional output for domestic consumption. The move aims to ensure uninterrupted LPG supply to households amid uncertainty in the global energy market due to the West Asia crisis.

To manage supply constraints and prevent hoarding, the government has also introduced a 25-day gap between LPG cylinder bookings for consumers. DeshGujarat