India Orders Faster Expansion Of Natural Gas Infrastructure Amid Supply Disruptions

India has issued directives to hasten the development of natural gas infrastructure to address disruptions in the supply of natural gas due to conflicts in West Asia. The Indian government issued these directives due to geopolitical tensions in West Asia.

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The Ministry of Petroleum and Natural Gas issued an order stating that disruptions in the flow of oil due to the near-closure of the Strait of Hormuz, an important shipping route, affect about 40% of India’s crude oil imports.

Supply Constraints Persist

According to the Ministry of Petroleum and Natural Gas, constraints in liquefied petroleum gas (LPG) and natural gas supply are expected to continue for an extended period. The disruptions are linked to damage and shutdowns at liquefaction facilities in Gulf countries that supply energy to India, along with continued logistical challenges in the Strait of Hormuz.

The ministry stated that these factors have necessitated immediate steps to improve domestic infrastructure and ensure efficient distribution of natural gas across regions.

Measures To Ease Pipeline Expansion

The government has put in place a framework that aims to address the challenges that have been affecting pipeline development and expansion. These challenges include land access challenges, delays in the issuance of approvals, and the amount charged by public bodies for pipeline development.

Under the new directives issued by the ministry, the government has promised that any pipeline development project that does not receive a response within a specified period will have its permit considered approved.

The framework also provides that land owners and bodies should facilitate access for pipeline construction.

Push For Wider PNG Adoption

Another aim of the order is the promotion of the use of piped natural gas (PNG) through the development of its network. The order also includes provisions for the prioritization of PNG supply in areas where the infrastructure exists.

In such regions, the government has outlined conditions under which LPG supply may be restricted if households do not transition to piped gas, as part of efforts to optimise fuel distribution.

The ministry said the steps are intended to create a uniform regulatory structure for infrastructure expansion and improve access to cleaner fuel sources across the country.