West Asia conflict: Distribution companies incentivise switch from LPG to PNG The government has reported a 36% rise in domestic LPG production compared to pre-West Asia conflict levels, with further increases anticipated in the coming days. This growth follows recent measures such as directing refiners to maximize LPG output and redirecting propane, butane, and other petrochemical streams toward LPG production. To address hoarding and balance demand, the government has extended cylinder booking intervals for households to 25 days in urban areas and 45 days in rural regions. In response to the crisis, city gas distribution (CGD) companies have introduced incentives to encourage consumers to transition to piped natural gas (PNG). For instance, Indraprastha Gas Ltd (IGL) in Delhi and surrounding cities is offering domestic users free gas worth Rs 500 for switching to PNG before March 31. Mumbai-based Mahanagar Gas Ltd has waived Rs 500 registration fees for households and security deposits ranging from Rs 1 to 5 lakh for commercial users. Similar promotions have been rolled out by GAIL and BPCL, according to Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas. Officials emphasized that while the current situation remains concerning, LPG supplies are being prioritized to meet domestic needs. The government’s efforts to stabilize the market include both production boosts and demand management strategies, alongside private sector initiatives to alleviate pressure on LPG resources.#bpcl #west_asia_conflict #gail #mahanagar_gas_ltd #indraprastha_gas_ltd
Should PNG Users Worry About Gas Shortage? Mahanagar Gas Reassures Consumers Concerns about potential gas rationing have been addressed by Mahanagar Gas Ltd (MGL), which confirmed that household piped natural gas (PNG) supplies remain uninterrupted. The clarification came after a social media user raised questions about energy supply disruptions linked to the Middle East conflict, asking whether consumers should start rationing gas. MGL stated that its operations in Mumbai continue to provide normal levels of PNG and CNG, with domestic household demand fully met through 100% locally produced gas. The reassurance follows government intervention to regulate natural gas allocation amid disruptions in liquefied natural gas (LNG) shipments through the Strait of Hormuz. The Ministry of Petroleum and Natural Gas cited the conflict in West Asia as a cause for the disruption, with suppliers invoking force majeure clauses. This has led to a shift in gas distribution priorities, with domestic PNG connections, compressed natural gas (CNG) for vehicles, LPG production, and essential pipeline operations placed at the top of the allocation list. Under the new framework, these sectors will receive 100% of their average past six-month gas consumption. Fertiliser plants are second in priority, receiving 70% of their usual supply, while industrial consumers connected to the national gas grid will get 80% of their average usage. City gas distribution companies are also directed to maintain 80% supply to industrial and commercial users. However, the prioritization of household gas has created challenges for commercial LPG users, including restaurants, hotels, and other businesses.#mumbai #indian_oil_corporation #strait_of_hormuz #ministry_of_petroleum_and_natural_gas #mahanagar_gas_ltd
