The Natural Gas (Supply Regulation) Order, 2026.

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-10032026-270784 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 1180] NEW DELHI, MONDAY, MARCH 9, 2026/PHALGUNA 18, 1947 1692 GI/2026 MINISTRY OF PETROLEUM AND NATURAL GAS ORDER New Delhi, the 9th March, 2026 S.O. 1232(E). — Whereas, the Central Government has assessed that the ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz and suppliers have invoked force majeure clause which would entail diversion of natural gas to the priority sectors; And Whereas, the Hon'ble Supreme Court in the common judgement of Association of Natural Gas and others v. Union of India (In re Special Reference No. 1 of 2001) has held that natural gas and liquified natural gas come within the purview of petroleum and petroleum products; And Whereas, the petroleum and petroleum products are covered under entry 5 of the Schedule of the Essential Commodities Act, 1955 (10 of 1955); And Whereas, the Central Government is conferred with the power under section 3 of the Essential Commodities Act, 1955, to regulate, inter alia, the supply and distribution of petroleum and petroleum products, as well as trade and commerce relating to the same, if it is of the opinion that it is necessary or expedient to do so for maintaining or increasing supplies of petroleum and petroleum product or for securing their equitable distribution; And Whereas, natural gas, including re-gasified LNG are a critical input for sectors such as domestic PNG supply, CNG for transport, fertilizer production, LPG production and other industrial activities; And Whereas, the Central Government, in order to ensure equitable distribution and continued availability of natural gas for priority sectors, considers it necessary to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including LNG and re-gassified-LNG. Now, therefore, in exercise of the powers conferred by section 3 read with clauses (d) and (f) of sub-section (2) of the Essential Commodities Act, 1955, the Central Government hereby makes the following order, namely:— 1. Short title and commencement.- (1) This order may be called the Natural Gas (Supply Regulation) Order, 2026. (2) It shall come into force on the date of its publication in the Official Gazette. 2. Regulation of production, supply and distribution. – The Central Government may, with a view to maintain supplies and securing equitable distribution and availability of natural gas for priority sector, hereby directs as under: - (1) Priority Sector I The supply of natural gas to the following sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent. of their average past six month average gas consumption: (a) Domestic Piped Natural Gas supply; (b) Compressed Natural Gas for transport; (c) LPG production including LPG shrinkage requirements; (d) Pipeline compressor fuel and other essential pipeline operational requirements. (2) Priority Sector II The supply of natural gas to the fertilizer plants shall ensure seventy per cent. of their past six month average gas consumption, subject to operational availability: Provided that the units shall not use the gas supply for any other purpose except in the production of fertilizers and a certificate to this effect shall be furnished to the Petroleum Planning and Analysis Cell (hereinafter referred to as the "PPAC") through the Ministry of Fertilizer: Provided further that allocation to a particular unit may not be diverted to any other unit. (3) Priority Sector III The gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six month average gas consumption subject to operational availability. Explanation.- For the purpose of gas allocation to this sector, the principles shall be evolved by the PPAC in coordination with the Industry Committee. (4) Priority Sector IV All City Gas Distribution (hereinafter referred to the “CGD") entities shall ensure that industrial and commercial consumers supplied through their networks receive eighty per cent. of their past six month average gas consumption subject to operational availability. Explanation: For the purpose of gas allocation to this sector, the principles shall be evolved by the PPAC in coordination with the Industry Committee. 3. Gas redistribution. - (1) The gas required to meet the priorities mentioned in paragraph 2 shall be through full or partial curtailment of gas supplied in the following order of priority: (a) petrochemical facilities not limited to: (i) ONGC Petrol additions Limited; (ii) GAIL Pata Petrochemical Complex; (iii) Reliance O2C and other High-Pressure High Temperature (HPHT) gas consumers; (b) power plants as required. (2) The oil refining companies shall absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty-five per cent. of the past six month gas consumption, subject to operational feasibility. 4. Implementation mechanism of pooling of gas. - (1) The Gas Authority of India Limited (hereinafter referred to as the GAIL), in coordination with the PPAC shall manage the supplies of natural gas to implement the above directions for which it shall submit the invoice price of every diverted volume of natural gas to the PPAC. (2) A pooled price shall be notified by the PPAC for the natural gas diverted from non-priority sectors to priority sectors as specified herein. (3) The entities from priority sector to whom the pooled gas is supplied shall give an undertaking that the pooled price is acceptable to them and they shall not make the force majeure mitigation supply subject to any litigation as this may be at variance with their existing contracts. (4) The entities shall undertake not-to resale the diverted natural gas. 5. Directions to gas producers, marketers and pipeline operators. -All entities involved in production, import, marketing, transportation or supply of natural gas including: (a) ONGC, RIL, OIL, Vedanta and other domestic natural gas producers (b) GAIL and other gas marketing entities, (c) LNG terminal operators, (d) Natural gas pipeline operators, and (e) City Gas Distribution entities, shall forthwith comply with the directions contained in this order, including revision of supply schedules, diversion of supplies and sector-wise allocation of natural gas as directed by the Central Government in coordination with the GAIL. 6. Overriding effect on existing contractual arrangements. – The provisions of this order shall have effect notwithstanding anything inconsistent contained in the Gas Sale Agreements (GSAs) and other commercial arrangements. 7. Furnishing of information. - Every producer, importer, transporter, marketer or distributor of natural gas including LNG and regasified LNG shall furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government or to any officer authorised by it. Explanation. - For the purposes of furnishing information, the Central Government authorises the PPAC as the nodal agency. [F. No. L-16016/6/2026-GP-I (E:55648)] REGHURAM KRISHNA, Under Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.