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India diverts gas: Households safe, industries face cuts
11 Mar
Summary
- Gas supplies to households, CNG vehicles, and LPG units remain uninterrupted.
- Petrochemical units and power plants may face complete gas allocation cutoffs.
- Government has overridden existing contracts to manage gas diversion.
India has implemented measures to ensure uninterrupted gas supplies to essential sectors, including households, CNG vehicles, and LPG production units. This decision comes as a response to the ongoing supply crunch stemming from the Iran war and attacks on energy facilities in the Gulf. Petrochemical units and power plants are at risk of having their gas allocations completely cut off.
The government has directed the diversion of both imported and domestic gas from non-priority sectors to meet the demands of priority users. This move necessitates overriding existing contractual arrangements to ensure equitable distribution. While domestic gas users receive 100% of their average consumption, allocations for fertilizer plants are capped at 70%, and other industrial consumers at 80%.
Supplies to refineries will be reduced to 65% of their average consumption. State-run GAIL will manage the gas diversion process, with all diverted gas forming a pool at a common price set by the oil ministry. Companies receiving this pooled gas must adhere to the price and cannot resell it.
