MoPNG issues Natural Gas (Supply Regulation) Order, 2026; implements priority allocation for supply of natural gas to ensure equitable distribution

The Ministry of Petroleum and Natural Gas (“MoPNG”) has issued the Natural Gas (Supply Regulation) Order, 2026 which has come into force with immediate effect.

With a view to maintain supplies and to ensure equitable distribution and availability of natural gas for priority sector, the Central Government has directed that the supply of natural gas to the following sectors must be treated as priority allocation and shall be maintained to hundred per cent. of their average past 6-month gas consumption, subject to operational availability:

1. Domestic Piped Natural Gas supply
2. Compressed Natural Gas for transport
3. LPG production including LPG shrinkage requirements
4. Pipeline compressor fuel and other essential pipeline operational requirements.

Further, all City Gas Distribution (“CGD”) entities are required to ensure that industrial and commercial consumers supplied through their networks receive eighty per cent. of their past 6-month average gas consumption subject to operational availability.

Entities involved in production, import, marketing, distribution, transportation or supply of natural gas including LNG terminal operators and CGD entities are required to comply with the directions contained in this order diversion of supplies and sector-wise allocation of natural gas as directed by the Central Government in coordination with the GAIL.

Additionally, every producer, importer, transporter, marketer or distributor of natural gas including LNG and regasified LNG have to furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government. Please note that the Central Government has authorized Petroleum Planning and Analysis Cell (“PPAC”) as the nodal agency for this purpose.

Source: Ministry of Petroleum and Natural Gas