Tatva Chintan Pharma Chem is set to experience a reduction in natural gas supply following a new government regulation amid geopolitical tensions.
The Ministry of Petroleum and Natural Gas has issued the “Natural Gas (Supply Regulation) Order, 2026,” which mandates that industrial consumers, including Tatva Chintan‘s manufacturing facilities, will receive only 80% of their average gas consumption from the past six months. This decision, influenced by conflicts in the Middle East, aims to manage the allocation and pricing of natural gas. The supply and allocation will now be determined by a Pooled Price mechanism, as notified by the Petroleum Planning & Analysis Cell, which will set the final retail sale price for the company’s units. This order, classified as a Force Majeure mitigation measure, overrides existing Gas Sales Agreements concerning pricing and contract quantities.
In response, Tatva Chintan has arranged for alternative fuel sources, as permitted by the Gujarat Pollution Control Board, and is optimising production processes to mitigate the impact on output. The company is monitoring the situation closely and will update the stock exchanges with any significant developments.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Business Desk and reviewed by Aman Shukla before publication.