India boosts gas supplies to urea plants, industry amid Middle East conflict: govt

India has taken steps to ramp up gas supplies to operating urea plants, while also increasing gas availability to other industrial and commercial sectors, including the City Gas Distribution network, even as the Middle East conflict persists, the Press Information Bureau, the government's nodal agency, said in a statement April 6.

Gas supply to operating urea plants, which was approximately 70%–75% of their six-month average consumption, has been increased to about 90% from April 6, it said.

Starting April 6, gas availability to other industrial and commercial sectors, including City Gas Distribution networks, has also been increased by an additional 10%, it said.

Priority sectors continue to receive protected supplies, including 100% supply to domestic piped natural gas (PNG) and compressed natural gas (CNG) transport, it said.

The moves come as India, the world's fourth-largest LNG buyer, grapples with supply concerns stemming from the ongoing Middle East conflict, with over 60% of the country's LNG supply originating from the region.

PNG expansion

CGD entities have been advised to prioritize PNG connections for commercial establishments such as hotels, restaurants and canteens, and are also offering incentives for domestic and commercial PNG connections, according to PIB.

India's Petroleum and Natural Gas Regulatory Board, or PNGRB, has extended the National PNG Drive 2.0 till June 30 to sustain momentum in PNG expansion, PIB said, adding that since March 367,000 PNG connections have been gasified and around 400,000 additional customers have registered for new connections.

In addition, states/union territories and central ministries have been requested to expedite approvals required for expansion of the CGD network, it said.

All states/UTs have been offered an additional 10% allocation of commercial LPG if they can help in long term transition from LPG to PNG, it said, adding that 17 states/UTs are already receiving additional commercial LPG allocation linked to PNG expansion reforms.

Among other measures, the Ministry of Road Transport & Highways has adopted an Accelerated Approval Framework for CGD infrastructure for three months to process applications on a priority basis, it noted.

The government of India vide gazette dated March 24 has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955, it said.

"The order provides a streamlined and time-bound framework for laying and expanding pipelines across the country, addressing delays in approvals and access to land, and enabling faster development of natural gas infrastructure, including in residential areas," it said.

"It is expected to accelerate PNG network growth, enhance last-mile connectivity, and support the transition to cleaner fuels, thereby strengthening energy security and advancing India's gas-based economy," it added.

Platts assessed the May JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, at $18.306/million British thermal units on April 6, up 2.5% from the previous close. Platts assessed the LNG West India Marker (WIM), the benchmark for LNG cargoes delivered to India, for May at $18.106/MMBtu on April 6, at a discount of 20 cents/MMBtu to the May JKM assessment.