Hormuz disruption: Centre issues order to strengthen natural gas pipeline infrastructure
New Delhi: In a significant move aimed at bolstering energy security and reducing dependence on imported fuels, the Central government has issued a new order to streamline the laying of pipelines for natural gas and petroleum products.
The order, titled the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, was published in the official gazette on March 24.
The directive comes in the wake of mounting concerns over long-term fuel supply disruptions triggered by extensive damage to liquefaction facilities in the Gulf region and the continued blockage of the Strait of Hormuz.
These developments have prompted the government to accelerate fuel diversification efforts as a critical mitigation strategy for long-term energy security.
The order seeks to establish a uniform framework to address persistent hurdles that have impeded pipeline infrastructure expansion. These include delays in approvals from multiple authorities, denial of access to land by consumers and resident welfare associations, exorbitant fees, and resistance from consumers in areas with existing natural gas connectivity who prefer to continue using LPG.
The government order said that increasing natural gas supply through pipelines to domestic consumers will enable the release of LPG from areas with pipeline connectivity, making additional LPG volumes available in regions without such infrastructure.
The government noted that supplying natural gas requires laying pipelines of varying capacities, originating from tap-off points on main transmission lines or from LNG storage facilities.
The order will apply to all public entities, housing societies, and authorised entities, as defined by the Petroleum Act, 1934, and licensed by the Central government.
It empowers authorised entities to lay pipelines in a time-bound manner, addressing longstanding issues such as right-of-way delays and unreasonable charges imposed by local authorities.
Officials indicated that even in areas with natural gas pipelines, many consumers continue to rely on LPG, creating an imbalanced fuel mix.
The new framework aims to correct this by facilitating smoother infrastructure rollout and encouraging a shift toward piped natural gas where feasible.
The Strait of Hormuz, a critical chokepoint through which nearly one-fifth of the world’s petroleum liquids pass, has been disrupted for months amid escalating tensions in the Gulf region.
Key liquefied natural gas (LNG) liquefaction facilities that supply a substantial portion of India’s gas imports have suffered extensive damage, leading to supply volatility and price pressures.
India, which relies heavily on imported LNG to meet its domestic energy needs, has been actively seeking to diversify its fuel sources and strengthen its internal infrastructure to cushion the impact of external shocks.
The disruption has exposed vulnerabilities in the country’s energy supply chain, prompting the government to fast-track pipeline projects that can connect more households to natural gas and reduce the burden on LPG, much of which is also imported.
The new order is seen as a proactive step to ensure that administrative and regulatory bottlenecks do not delay critical infrastructure at a time when global energy markets remain volatile.