Centre Regulates Natural Gas Supply After Middle East Disruption

The Centre has stepped in to regulate the supply and distribution of natural gas across the country after disruptions in global shipments triggered by the ongoing conflict in the Middle East.

In an order issued by the Ministry of Petroleum and Natural Gas, the government said shipments of liquefied natural gas moving through the Strait of Hormuz have been affected, with suppliers invoking force majeure clauses. The move has raised concerns about potential supply constraints and prompted the government to ensure that available gas is directed first to essential sectors.

Under the new Natural Gas (Supply Regulation) Order, 2026, priority allocation will be given to domestic piped natural gas supply, compressed natural gas used in transport, LPG production and essential pipeline operations.

The order states that these priority sectors will receive up to 100 per cent of their average gas consumption over the past six months, subject to operational availability.

Fertiliser plants have been placed in the second priority category and will receive up to 70 per cent of their average gas requirement, provided the gas is used strictly for fertiliser production.

Industrial consumers connected through the national gas grid and city gas distribution networks will receive around 80 per cent of their recent average consumption, depending on availability.

To maintain supply to these priority sectors, the government has allowed diversion of gas from lower priority users including petrochemical facilities and certain power plants if required.

The order also directs all entities involved in the production, import, marketing, transportation and distribution of natural gas to immediately comply with revised allocation and supply schedules.

Officials say the step is aimed at ensuring uninterrupted supply to households, transport networks and fertiliser production even if global supply disruptions continue. The government has also authorised the Petroleum Planning and Analysis Cell as the nodal agency to monitor production, imports, allocation and consumption data related to natural gas.

Against this backdrop, concerns have also been raised about the availability of cooking gas for commercial establishments. BJP MP Tejasvi Surya has written to Union Petroleum Minister Hardeep Singh Puri requesting steps to ensure uninterrupted supply of LPG to restaurants and the hospitality sector.

In his letter, Mr Surya said he had received a representation from the Bangalore Hotels Association highlighting concerns over continuity of commercial LPG supply to restaurants, hotels and other establishments that rely heavily on LPG for daily kitchen operations.

The government has already invoked the Essential Commodities Act to ensure adequate LPG availability, directing refineries and petrochemical units to maximise LPG production and divert key hydrocarbon streams to the LPG pool to maintain supplies.