India Moves to Boost Natural Gas Infrastructure Amid Supply Disruptions
India has issued an order to accelerate the development and expansion of its natural gas infrastructure in response to ongoing supply disruptions caused by the U.S.-Israeli conflict with Iran. The conflict has impacted global energy markets, including near-closure of the Strait of Hormuz, a key route for about 40% of India’s crude oil imports.
The Ministry of Petroleum and Natural Gas cited persistent constraints on liquefied petroleum gas (LPG) and natural gas supplies due to damage and shutdowns at Gulf liquefaction facilities and the continued blockage in the Strait of Hormuz. The order aims to streamline approvals, address land access issues, and reduce charges to enable faster pipeline construction and wider adoption of piped natural gas.
Key provisions include fixed timelines for pipeline approvals, automatic permissions if authorities do not respond, mandatory access for pipeline companies, capped fees for public bodies, and rules for land access and compensation. The order also promotes piped gas use over LPG, with measures to stop LPG supply where piped natural gas is available and households fail to switch.
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