The Ministry of Petroleum & Natural Gas announced the decision to remove all sectoral restrictions on the supply of Non-Domestic Packed LPG gas supplies that were imposed during the West Asia crisis.
The supplies have been restored to the levels prevailing prior to the crisis and the supply of bulk LPG, which had been suspended, has been relaxed by 50 per cent of the pre-crisis consumption levels.
As per the Ministry, the decision was taken following the improvement in the LPG supply situation. "During the West Asia crisis, to augment domestic LPG production, the Government had issued orders under the Essential Commodities Act requiring C3-C4 streams to be utilised exclusively for LPG production, diverting them from petrochemical and other downstream uses. Taking note of the improved indigenous LPG production and the projected availability of imported LPG cargoes, the Government has also decided to reduce the diversion of C3/C4 streams to the LPG pool. The enhanced allocation of C3-C4 streams for non-LPG uses will be implemented while ensuring that the domestic LPG availability remains unaffected and aggregate indigenous LPG production is maintained at not less than 40 TMT per day," mentioned the official press release.
The government has also directed the oil marketing companies to continue maintaining comprehensive data on commercial and industrial LPG consumers to facilitate efficient planning and supply management.
Regarding the expansion of Piped Natural Gas (PNG) connectivity, the ministry informed that commercial and bulk consumers who have already shifted to PNG will continue to remain on the same. Other eligible LPG consumers having access to the PNG network, or those in the process of shifting to PNG, will be progressively transitioned to PNG in coordination with City Gas Distribution (CGD) entities.
