India's Gas Crisis: Factories in Gujarat Suffer Amid West Asia Conflict

Gujarat factories scale down amid gas shortages; authorities permit alternate fuels while the Centre secures LPG for domestic use amid West Asia conflict| India News

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A disruption in imported natural gas supplies, triggered by constraints on energy shipments through the Strait of Hormuz amid the ongoing West Asia conflict, has led to curbs on industrial gas consumption in Gujarat, forcing several factories to scale down production even as authorities allow temporary use of alternate fuels and the Centre moves to secure LPG supplies for households.

The impact is being felt across several gas-intensive sectors, including ceramics, textiles, glass and chemicals. In the Morbi ceramic manufacturing cluster, more than 100 factories that rely on natural gas to run their kilns have shut down production following the reduction in gas supplies.

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Almost a fourth of India’s natural gas requirements has been impacted by force majeure conditions enforced by foreign suppliers because of the West Asia conflict, and the government is procuring supplies through alternative routes to overcome the shortfall.

Nearly 50% of India’s oil imports pass through the Strait of Hormuz, the crucial waterway that has effectively been shut by Iran following the start of its conflict with Israel and the US. Fuel and gas prices have surged, heightening worries in India, which depends on imports to meet around 85% of its energy needs.