The Indian government has directed gas distributors to prioritise domestic natural gas and regasified LNG supply to the city gas distribution (CGD) network, a government document shows.
Indian domestic natural gas and imported LNG formed a 50:50 share in the country's overall gas consumption of 188mn m³/d in 2025, oil ministry data show.
Under the directive, domestic piped natural gas (PNG) for household cooking and compressed natural gas (CNG) used in passenger vehicles will be given 100pc priority allocation of the average of the past six months' gas consumption, the document shows.
This also includes supplies for rich natural gas that is used for LPG production and other essential pipeline operational requirements, the document shows. Volumes of natural gas are sent to processing units where propane and butane are extracted to make LPG.
Gas consumption by the CGD network was at 3.21mn m³/d in June-December 2025, up by 10pc on the year, oil ministry data show. Supplies from June-December 2025 are equivalent to seven standard LNG cargoes, Argus calculations show.
The government has also directed gas distributors to initiate full or partial curtailment of gas supplies to petrochemical plants that include ONGC Petrol Additions (OPAL), Gail Pata petrochemical complex, and Reliance's oil to chemical units and other high-pressure high-temperature (HPHT) gas consumers, as well as power plants, it said.
Gas consumption from power units were at 1.55mn m³/d in June-December 2025, down by 6pc on the year, while that of petrochemicals were at 143mn m³ (0.66mn m³/d) over the same period, down by 10pc on the year, oil ministry data show.
The fertilizer sector has been given the second priority status. Allocation will be adjusted to 70pc of the past six-months' average gas consumption provided that the units use the gas only for fertilizer production, the document added.
Average gas consumption of the fertilizer sector was at 4.04mn m³/d in June-December 2025, marginally lower from over the same period in the previous year, oil ministry data show. The 70pc of the average requirement would be equivalent to six LNG cargoes, Argus calculation show.
The tea industries, and other smaller manufacturing and industrial consumers getting gas supplies via the national gas grid, has been given the third and fourth priority status with supplies pegged at 80pc of their past six-month average gas consumption.
Average gas consumption to these sectors were at 3.07mn m³/d in June-December 2025, down by 12pc on the year, oil ministry data show.
LNG supply distribution to refineries is to be reduced to 65pc of the past six-month's gas consumption. Average gas consumption at refineries was at 1.08mn m³/d in June-December 2025, down by 4pc on the year. This is equivalent to roughly two LNG cargoes.
The Indian government has asked oil refiners to prioritise the use of propane and butane streams for LPG production to ensure adequate domestic cooking gas supply, instead of using them as petrochemical feedstock, an official document seen by Argus shows.
State-run IOC, BPCL, and HPCL have been asked not to divert, utilise, process, crack, convert or otherwise employ propane and butane streams for manufacturing of petrochemical products or other downstream products, the document shows.
Switch to coal
Curtailing supplies to power plants is likely to shift most power demand to coal-fired power plants.
India is considering issuing its emergency coal import directive to imported coal-based power plants to boost generation and to plan fuel procurement to meet peak summer demand.
The country's power ministry is evaluating a proposal to invoke Section 11 of its Electricity Act, which empowers the government to direct imported coal-fired utilities to increase generation.
