India Prioritizes Key Gas Sectors as Middle East Conflict Disrupts LNG Supply

India has introduced emergency gas allocation measures after LNG supply disruptions linked to the Middle East conflict tightened availability across the country. Under the Ministry of Petroleum and Natural Gas – Natural Gas (Supply Regulation) Order, 2026, the government has classified gas consumers into four priority groups to protect essential sectors as LNG imports from the Gulf face pressure.

According to the new allocation framework, full gas supply will be maintained for domestic piped gas, transport CNG, LPG production, and pipeline operational requirements. These sectors will continue receiving volumes based on their average consumption over the past six months.

Meanwhile, fertilizer plants will receive about 70% of their recent average gas consumption. Industrial users connected to the national gas grid, including manufacturers and tea producers, will receive around 80% of their previous volumes. The same allocation ratio will also apply to industrial and commercial consumers supplied through city gas distribution networks.

To ensure sufficient supply for priority sectors, the government has ordered gas consumption cuts for petrochemical plants, power producers, and refineries. Petrochemical facilities such as GAIL’s Pata complex and Reliance Industries’ oil-to-chemicals operations are among those facing reduced allocations. Refineries have also been instructed to lower gas usage to roughly 65% of previous levels.

The measures come as LNG imports from QatarEnergy face force majeure pressure and shipping disruptions through the Strait of Hormuz. Indian authorities said efforts are underway to secure alternative cargoes, while gas is being diverted from non-priority sectors.

Officials have also urged consumers to avoid panic buying and conserve energy, noting that supply management measures will remain in place while the situation in the Middle East continues to affect global LNG flows.

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