India orders strengthening of natural gas infrastructure amid supply constraints
India issued an order on Tuesday to address hurdles in building and expanding natural gas infrastructure, as the country looks to diversify its fuel supply amid disruptions to global energy markets caused by the U.S.-Israeli war on Iran.
The conflict has disrupted shipping and gas supplies, including by the near-closure of the Strait of Hormuz, which serves as a conduit for 40% of India's crude oil imports.
Constraints on liquefied petroleum gas (LPG) and natural gas supply are expected to persist for a "long time" due to damage and shutdowns at Gulf liquefaction facilities supplying India, as well as continued blockage in the Strait of Hormuz, the Ministry of Petroleum and Natural Gas said in the order.
It added that a uniform framework is needed to remove hurdles such as land access issues, delays in approvals and high charges, to speed up pipeline construction and expand the use of piped natural gas across India.
The order sets timelines for pipeline approvals, with permissions deemed granted if authorities fail to respond in time, and requires landowners and local bodies to allow pipeline access.
It also caps fees that public authorities can charge pipeline companies for granting access, sets rules for land access and compensation, and promotes piped gas use, including provisions to stop LPG supply where piped natural gas is available and households do not switch.
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