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India Rejigs Gas Allotment Amid Supply Woes
15 Mar
Summary
- Gas prices for industrial customers are reduced significantly.
- CNG and piped cooking gas users receive supply priority.
- Imported LNG prices are being pooled for users.
India's gas supply has faced disruptions due to the ongoing crisis in West Asia, prompting a government-led reallocation of resources. The government is prioritizing needs for Compressed Natural Gas (CNG) and piped cooking gas for households. Imported Liquefied Natural Gas (LNG) prices are being pooled to manage costs for all users.
Adani Total Gas Ltd (ATGL) announced a significant price reduction for excess natural gas supplied to certain industrial customers. Effective March 16, 2026, the price has been lowered to Rs 82.95 per standard cubic metre (SCM) from Rs 119.90 per SCM. This revision reflects softer upstream gas prices and aims to benefit customers while maintaining system stability.
ATGL previously requested commercial and industrial customers to limit consumption to 40% of contracted volumes due to supply halt concerns. Spot market rates were applied beyond this threshold. Approximately 70% of ATGL's gas volumes are sourced domestically and supplied to CNG and domestic PNG users, whose prices remain unchanged. The remaining 30%, sourced via imported LNG, serves commercial and industrial users.
