India's Gas Reallocation Amid Strait of Hormuz Disruption

In response to a significant disruption of liquefied natural gas shipments through the Strait of Hormuz, India has implemented emergency measures to reallocate gas supplies, as per a recent government notification. This strategic move aims to prioritize essential sectors over less critical ones.

The disruption has notably affected India, which relies on imports for half of its 195 million standard cubic metres per day gas consumption. Prior to the Strait's closure and subsequent force majeure event by Qatar, India received approximately 60 mmscmd of its gas supply from the Middle East.

The reallocation strategy prioritizes complete natural gas supply to households and the automobile sector for transport fuel. Fertiliser plants, crucial for agriculture, are slated to receive 70% of their usual supply. Meanwhile, supplies to tea, manufacturing, and other industrial consumers are maintained at 80%, and smaller industrial clients will receive the same reduced allotment.