India Defines 4 Priority Sectors For Using Natural Gas Amid Iran-US War

The Iran-US war in the Middle East has affected the supply of natural gas across the world. The Strait of Hormuz remains a part of the war zone for over two weeks, due to which more than 750 cargo ships are stuck at major ports in the region.

India buys 50 per cent of its natural gas needs from the international market. Of this, it imports 20 per cent from Qatar.

After Iran's missile attacks on Qatar's gas fields, the world's largest natural gas exporting company, QatarEnergy, stopped production. This has affected supply of natural gas to Asian regions.

To deal with this growing challenge, India has guidelines for regulating the supply and use of natural gas in different sectors across the country. According to the new guidelines issued by the Ministry of Petroleum, the central government divided key sectors into four priority areas.

First, the supply of natural gas will be maintained at 100 per cent of their average gas consumption of the last six months for domestic piped natural gas supply, CNG for transport, LPG production, for pipeline compressor fuel, and other essential pipeline operational requirements.

Second, the supply of natural gas to fertilizer plants will be ensured at 70 per cent of their average gas consumption of the last six months.

Third, gas supply to tea industries, manufacturing and other industrial consumers through the National Gas Grid will be maintained at 80 per cent of the average gas consumption of the last six months.

And fourth, all gas distribution units will ensure that 80 per cent of the average gas consumption of the last six months is supplied to industrial and commercial consumers through their networks.

"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," Kirit Parekh, an economist who specialises in energy, especially gas, told NDTV.

"In this situation, while it would be expensive to generate electricity, India has 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," Parekh said.