New Delhi, July 5 -- The Centre has withdrawn most provisions of the emergency natural gas supply regulations introduced during the recent West Asia conflict after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed following a ceasefire.
In a notification issued on Saturday, the Ministry of Petroleum and Natural Gas amended the Natural Gas (Supply Regulation) Order, 2026, removing key operational provisions that had allowed the government to control the allocation of domestically produced natural gas and imported LNG according to a revised priority list.
The emergency order, issued on March 9 under the Essential Commodities Act, came after the conflict in West Asia disrupted LNG shipments through the Strait of Hormuz. Some suppliers invoked force majeure clauses and diverted cargoes to priority consumers, raising concerns over India's energy security.
The ministry said the situation has improved since then. "The ongoing conflict in the Middle East that had resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz has been subject to a ceasefire, and negotiations are ongoing, as part of which, sea traffic through the Strait of Hormuz has been permitted to be resumed," the notification said.
It added that, in view of these developments, the government was "omitting" parts of the March 9 order that had prioritised the allocation of available gas supplies.
The gas supply restrictions were one of three emergency measures introduced after energy supplies from the Gulf came under threat following US and Israeli strikes on Iran on February 28 and Tehran's retaliatory attacks, which effectively disrupted traffic through the strategic waterway.
The other two emergency measures, directing refiners to maximise LPG production by diverting feedstock from petrochemical units and restricting diesel sales to bulk consumers, had already been withdrawn after fuel supplies returned to normal.
India remains heavily dependent on imported energy. The country imports about 88 per cent of its crude oil requirements and nearly half of its natural gas demand. Around 40 to 45 per cent of crude oil imports and about 65 per cent of LNG supplies originate from West Asia, making the Strait of Hormuz a critical route for India's energy imports.
Although India managed to diversify crude oil purchases by sourcing supplies from other producing nations during the crisis, natural gas imports remained exposed because most LNG cargoes from Qatar pass through the Strait of Hormuz. The March order gave the government powers to direct sector-wise allocation and diversion of domestic gas, LNG and regasified LNG to ensure uninterrupted supplies to essential consumers. It guaranteed full supplies, based on the previous six months' average consumption, to piped natural gas households, compressed natural gas for transport, LPG production and pipeline operations.
Fertiliser plants were assured 70 per cent of their average gas requirement, while industrial consumers connected to the national gas grid and city gas distribution networks were guaranteed 80 per cent of their average consumption, subject to operational availability.
To meet these commitments, gas supplies to petrochemical plants and power stations could be reduced, while oil refiners were directed to cut gas consumption to about 65 per cent of their average use wherever operationally feasible.
The order also required state-run GAIL, working with the Petroleum Planning and Analysis Cell, to pool and redistribute gas supplies, determine pooled prices for diverted gas and oversee revised allocation schedules. Gas producers, LNG importers, marketers, pipeline operators and city gas distributors were required to comply with the revised supply plan, with the emergency provisions taking precedence over existing commercial agreements.
Published by HT Digital Content Services with permission from Millennium Post.