India issues Natural Gas (Supply Regulation) Order prioritising households and transport
Change
India enacted the Natural Gas (Supply Regulation) Order, 2026, effective March 9, 2026, which divides consumers into priority categories and mandates that domestic Piped Natural Gas (PNG) for households, Compressed Natural Gas (CNG) for transport and Liquefied Petroleum Gas (LPG) production receive up to 100% of their six‑month average consumption while capping fertilizer at 70% and most industrial users at 80%.
Why it matters
The order forces operators to accept government-directed reallocations and pooled supplies managed by GAIL (India) Limited, removing prior discretionary access to contracted volumes and enabling mandatory curtailments of non-priority users. Fertilizer plants must certify end-use and cannot transfer allocated gas between units, creating a binding compliance and operational requirement for supplier and procurement teams.
Implications
- • Fertilizer plant compliance teams must submit a certificate confirming gas is used only for fertilizer production to retain their 70% allocation — failure to submit will result in loss of allocated gas.
- • Refinery fuel managers must reduce gas consumption to about 65% of their six‑month average or face enforced curtailment of gas supplies under the order.
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Topics
Policy & Regulation Regulatory Actions Supply Chain & Logistics Oil & Gas Energy Transition