India lifts emergency natural gas supply controls as LNG shipments resume

LNG curbs removed as gas supply eases

India has lifted emergency natural gas supply restrictions imposed in March due to the West Asia conflict. The government's decision follows a ceasefire, easing concerns over crucial LNG shipments through the Strait of Hormuz. This move restores normal gas allocation to vital sectors like fertilizer plants and refineries, signaling a return to energy supply stability after a period of disruption.

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India Withdraws Emergency Natural Gas Supply Controls, LNG Shipments Through Strait Of Hormuz Resume After Middle East Ceasefire

New Delhi: The Central government has withdrawn the emergency natural gas supply controls that were introduced earlier this year after disruptions in liquefied natural gas (LNG) shipments.The decision comes after the situation in the Middle East improved, allowing normal movement of LNG cargoes through the Strait of Hormuz.The revised order came into effect immediately after it was published in the Official Gazette on Saturday.Why The Rules Were IntroducedThe government had introduced the Natural Gas (Supply Regulation) Order, 2026 on March 9, 2026. Centre Restores Commercial LPG Supply To Pre-Crisis Levels As West Asia Situation StabilisesThe emergency rules were brought in after the conflict in the Middle East disrupted LNG shipments through the Strait of Hormuz.Several LNG suppliers had declared force majeure because of the conflict, making it difficult to supply gas under existing contracts.As a result, India faced uncertainty over gas imports and decided to regulate the production, allocation, distribution and use of natural gas across the country.Priority Sectors Were ProtectedThe emergency regulation allowed the government to divert available natural gas supplies to priority sectors.The order covered natural gas produced in India, imported LNG and regasified LNG.Its main objective was to ensure that essential industries and consumers continued to receive gas despite supply disruptions. India’s Energy Diplomacy Passes Its Toughest Test As Hormuz Crisis Exposes Risks, Spurs Coordinated Global Supply DiversificationThe government also aimed to maintain fair distribution of the available gas during the period of uncertainty.Situation Has Now ImprovedAccording to the latest government notification, the conflict has now moved towards a ceasefire, while negotiations are continuing.Sea traffic through the Strait of Hormuz has also resumed, improving the movement of LNG cargoes.With supply conditions becoming more stable, the government decided that the emergency controls were no longer required. Oil Prices Set To Ease After US-Iran Deal, Analysts Say Full Recovery Could Take Up To A YearNormal Gas Supply RestoredThe Natural Gas (Supply Regulation) (Amendment) Order, 2026 officially withdraws the emergency restrictions imposed in March.This means the temporary controls over gas production, allocation, diversion and consumption have been removed.The move is expected to restore normal market operations while ensuring that natural gas supplies continue without major disruptions as global energy trade gradually returns to normal.

3 hours ago