New Delhi: Two LNG cargoes are on their way to India as the government and gas companies move to bridge a 47.4 MMSCMD natural gas supply disruption caused by force majeure conditions linked to the ongoing tensions in West Asia.
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“About 47.4 MMSCMD of supply has been affected due to force majeure conditions. Procurement through alternative suppliers and routes is underway to offset this disruption. Gas companies have also secured LNG cargoes from new sources and two LNG cargoes are on their way to the country,” said Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas, during an inter-ministerial briefing on developments in West Asia on Wednesday.
The government has also issued a Natural Gas Control Order on 9 March 2026 under the Essential Commodities Act to manage supplies and ensure priority sectors continue to receive fuel.
“Domestic PNG supply and CNG for vehicles will receive 100 percent supply with no cuts,” Sharma said.
Industrial consumers connected to the gas grid, including tea industries and manufacturing units, will receive about 80 percent of their previous six-month average supply, while fertiliser plants will receive around 70 percent supply.
“Refineries and petrochemical units will take a reduction of about 35 percent so that higher priority sectors can be protected,” Sharma added.
India’s crude oil supply remains secure despite disruptions affecting shipments through the Strait of Hormuz, the government said. “India’s crude oil supply remains secure. India’s daily consumption is about 55 lakh barrels and through diversified procurement the volumes secured currently exceed what would normally have arrived through the Strait of Hormuz during this period,” Sharma said.
India currently imports crude from around 40 countries, reducing reliance on the key West Asian shipping route. “About 70 percent of crude imports are now coming from routes outside the Strait of Hormuz compared with about 55 percent earlier,” she said.
Two additional crude cargoes are also en route to the country and will further strengthen supply availability. Refineries across the country are operating at very high capacity utilisation levels, with some running above 100 percent utilisation, Sharma added.
India imports about 60 percent of its LPG consumption, and nearly 90 percent of those imports typically pass through the Strait of Hormuz, which has been affected by the current situation.
To mitigate risks to domestic supply, the government issued an order on 8 March 2026 directing refineries and petrochemical complexes to divert hydrocarbon streams to the LPG pool.
“Refineries and petrochemical complexes have been directed to maximise LPG production by diverting propane, butane, propylene and butenes streams to the LPG pool,” Sharma said.
“As a result of these measures, domestic LPG production has increased by about 25 percent and the entire domestic LPG production is being directed towards household consumers,” she added.
The government has prioritised domestic LPG supplies for households while ensuring essential sectors such as hospitals and educational institutions continue to receive non-domestic LPG allocations.
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The government said it is closely monitoring developments in global energy markets and domestic supply conditions.
“The Government is continuously monitoring the global situation and taking necessary steps to ensure uninterrupted fuel supplies and protect households and priority sectors,” Sharma said.