Due to disruptions in liquefied natural gas (LNG) shipments through the Strait of Hormuz arising from the ongoing Middle East conflict and invocation of force majeure by suppliers, risks to natural gas supply were identified. Natural gas, including LNG and re-gasified LNG, is a key input for domestic PNG supply, CNG transport, fertilizer production, LPG production and industrial activities. To ensure equitable distribution and continued availability of gas for priority sectors, the Central Government has issued this Order regulating production, allocation and distribution of natural gas.

The Central Government issued the Natural Gas (Supply Regulation) Order, 2026 to regulate supply and sector-wise allocation of natural gas.

Priority Sector Allocation

1. Priority Sector I – 100% of past six-month average consumption:
   Domestic PNG supply, CNG for transport, LPG production and pipeline operational requirements.
2. Priority Sector II – 70% of past six-month average consumption:
   Fertilizer plants; gas shall be used only for fertilizer production and certification shall be furnished to PPAC through the Ministry of Fertilizers.
3. Priority Sector III – 80% of past six-month average consumption:
   Tea industries, manufacturing and other industrial consumers supplied through the national gas grid.
4. Priority Sector IV – 80% of past six-month average consumption:
   Industrial and commercial consumers supplied through City Gas Distribution networks.

Gas required for priority sectors may be met through curtailment of supply to petrochemical facilities and power plants, and refinery gas allocation may be reduced to about 65% of past six-month consumption, subject to operational feasibility.

GAIL, in coordination with PPAC, shall implement gas diversion and pooling arrangements, and entities involved in production, import, marketing, transportation or distribution of natural gas shall comply with the directions issued under this Order.