India prioritises gas supply to households, CNG and LPG production
GAIL must pool diverted gas and suppliers must accept the PPAC‑set pooled price
Change
India has enacted the Natural Gas (Supply Regulation) Order, 2026, effective March 9, 2026, mandating priority allocations based on six‑month averages (household PNG, CNG and LPG production up to 100%), authorising diversion from non‑priority users and creating a GAIL‑managed pooled supply priced by the Petroleum Planning and Analysis Cell with a prohibition on resale or legal challenge of diverted volumes.
Why it matters
Fertiliser plants are required to produce a certificate confirming allocated gas will be used solely for fertiliser manufacture and allocated volumes cannot be transferred between units. Oil refiners have been ordered to cut consumption (to about 65% of six‑month averages depending on feasibility) and gas‑fired power plants may receive supply reductions if required under the order.
Implications
- — Fertilizer plant operators must submit the mandated certificate before receiving allocations — failure to provide the certificate will block allocated gas deliveries and prevent transfer of volumes between units.
- — Oil refinery operations and gas‑fired power‑plant operators must reduce gas consumption immediately toward the order's assigned levels (refiners to about 65% of six‑month averages) or face enforced supply cuts under the order.
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Source
View on The New Indian Express