Gujarat Gas has informed its industrial customers that it will reduce daily gas supply allocation by 50% starting March 6, 2026, citing disruptions in global LNG supply linked to the ongoing Middle East conflict.
According to CNBC-TV18, the communication issued to customers, the reduction will remain in effect until at least March 31, 2026, with the possibility of extension depending on supply conditions. The curtailment applies to the Daily Contract Quantity (DCQ) allocated to industrial consumers.
Industrial users to face sharp supply cuts
The reduction mainly affects industries that rely on piped natural gas (PNG) supplied by Gujarat Gas. These include major manufacturing clusters such as ceramics in Morbi, chemicals, textiles and other energy-intensive sectors across Gujarat.
Industrial customers have been advised to limit gas consumption and adjust operations during the supply reduction period.
LNG supply disruptions behind the decision
The cut in supply comes amid growing disruption in global LNG markets following the escalation of the US-Israel-Iran conflict, which has affected energy infrastructure and shipping routes in the Gulf region.
Reports indicate that QatarEnergy halted production at its Ras Laffan LNG facility after drone attacks, declaring force majeure on certain deliveries. In addition, tensions around the Strait of Hormuz, a key maritime route for global LNG shipments, have created further uncertainty for tanker movements.
India imports a significant portion of its natural gas requirements in the form of LNG, with Qatar being one of the country’s largest suppliers.
Other Indian gas companies also tightening supplies
The supply reduction by Gujarat Gas follows similar actions by other Indian energy companies. Firms including GAIL, Indian Oil Corporation and Petronet LNG have reportedly imposed smaller curbs on industrial gas allocations as supply constraints intensify.
However, Gujarat Gas’s 50% reduction is among the steepest, reflecting the company’s relatively higher reliance on imported LNG to serve its industrial customer base.