The ongoing Iran-US war in the Middle East has disrupted global energy supply chains, prompting India to take precautionary steps to manage the availability of natural gas. With tensions escalating near the Strait of Hormuz, shipping movement has slowed significantly, leaving more than 750 cargo vessels stranded at major ports in the region over the past two weeks.
India depends heavily on imported natural gas to meet its energy needs. Around 50 per cent of the country’s gas demand is met through imports. A significant share of this supply comes from Qatar, which accounts for about 20 per cent of India’s total natural gas imports.
Supply disruptions after Qatar gas field attacks
The situation worsened after Iran launched missile strikes targeting gas fields in Qatar. Following the attacks, QatarEnergy, the world’s largest natural gas exporting company, halted production at the affected facilities. The move has impacted natural gas supply across several Asian markets, including India.
With global supply tightening and shipping routes under stress, the Indian government has activated contingency guidelines to regulate gas distribution across sectors.
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Government sets four priority categories
The Ministry of Petroleum has issued guidelines that classify sectors into four priority levels for natural gas supply during the crisis period.
In the priority category, essential services will continue to receive 100 per cent of their average gas consumption based on the past six months. This includes domestic piped natural gas supply, CNG for transport, LPG production, pipeline compressor fuel, and other critical pipeline operational requirements.
Fertiliser plants fall under the second priority category. These units will receive 70 per cent of their average gas consumption from the past six months.
The third priority category includes tea industries, manufacturing units, and other industrial consumers connected through the National Gas Grid. They will receive 80 per cent of their average gas consumption.
The fourth category applies to gas distribution companies. They have been directed to ensure that 80 per cent of the average gas consumption of the last six months continues to reach industrial and commercial consumers through their networks.
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Industry asked to use gas carefully
Energy economist Kirit Parekh said India may need to temporarily reduce gas consumption during the crisis.
“India imports 50 per cent of its gas from the international market. About 40 per cent of this is LNG, of which we import 20 per cent from Qatar. India has to reduce gas consumption during the crisis period temporarily, and reduce the use of gas in industry, especially in the power sector,” Parekh told NDTV.
"In this situation, while it would be expensive to generate electricity, India has the potential to increase power generation and the sector won't be affected much. But businesses that are running their industries with gas as a critical resource will have to use it wisely. A lot of gas is used by petroleum companies to produce hydrogen. We can also produce it with electricity, but it is a very expensive option", he added further.
