New Delhi, March 10: India has restructured its natural gas allocation strategy to safeguard essential services from the impact of global supply chain disruptions. The Ministry of Petroleum and Natural Gas announced the Natural Gas (Supply Regulation) Order, 2026, today, citing the volatile situation in the Middle East and its effect on the Strait of Hormuz. The order serves as a safeguard against the shortage of Liquefied Natural Gas (LNG) required for national infrastructure.
The government maintained that the current geopolitical climate has directly affected the arrival of LNG consignments. By utilizing powers under the Essential Commodities Act, officials stated that they intend to provide a transparent framework for gas usage during this period of scarcity. The nodal agency for monitoring these flows will be the Petroleum Planning and Analysis Cell (PPAC).
Public utility services are the biggest beneficiaries of the new mandate. The order affirmed that domestic PNG and CNG for vehicles will be maintained at 100 percent of their average six-month consumption levels. This category also covers the gas required for pipeline operations and LPG production.
“The Central Government has taken the step after assessing that LNG shipments through the Strait of Hormuz have been affected,” the official document declared. It further noted that various stakeholders must furnish detailed reports on their stocks and imports to the government to ensure the system remains balanced.
Lower priority tiers will see a decrease in guaranteed volumes. While fertilizer production is protected at 70 percent of its usual intake, commercial sectors and specific industries like tea manufacturing will be limited to 80 percent of their historical averages. Refineries have been asked to operate at a 65 percent threshold to accommodate the needs of higher-priority categories.
The burden of the supply gap will fall first on the petrochemical industry. Facilities such as GAIL’s Pata Petrochemical Complex and ONGC Petro Additions Limited will be among the first to see curtailments. If the shortage persists, power plants will follow in the reduction sequence.
GAIL has been tasked with the logistical challenge of redirecting gas. The company asserted that it will work closely with the PPAC to notify a pooled price for gas taken from non-priority sectors. All entities receiving this diverted gas must sign an undertaking that they will not resell the volume. This regulation is now in effect following its publication in the Official Gazette.
