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India Eyes 7 mmscmd Gas Pool Amid Supply Shock
6 Apr
Summary
- India plans to pool 7 mmscmd of natural gas to address supply shortages.
- The pooled gas will be supplied at approximately $11.60 per mmbtu.
- City gas distributors, fertilizer makers, and industries will receive the pooled gas.
Facing significant natural gas supply disruptions due to geopolitical events, India is implementing a gas pooling mechanism. The government plans to make around 7 million metric standard cubic meters per day (mmscmd) of natural gas available to various consumers. This pooled gas will be priced at approximately $11.60 per metric million British thermal unit (mmbtu).
The initiative follows an extraordinary order issued last month to regulate supplies after imports were drastically reduced. A pool of about 7 mmscmd has been formed, comprising imported gas and domestic production from companies like Vedanta, Reliance Industries, and Oil & Natural Gas Corporation. Gail has been tasked with administering these supplies.
Approximately 2.5 mmscmd of the pooled volume is designated for city gas distributors, with the remainder allocated to fertilizer makers and other industries. The government has prioritized piped natural gas for households and CNG for transport. Effective April 6, 2026, supplies to fertilizer plants will increase to about 90% of their average consumption.
