The government’s recent decision to prioritize gas supply for household PNG and CNG has raised concerns about potential curtailments for industrial users. Analysts estimate that a 20% reduction in gas supply to the industrial and commercial segments could lead to a 3% impact on volumes for both Mahanagar Gas Limited (MGL) and Indraprastha Gas Limited (IGL).

Gujarat Gas Limited, which supplies approximately 49% of its total volume to industrial and commercial consumers, is expected to face a more significant impact, with estimates suggesting a 10% reduction in volumes. In comparison, MGL and IGL have lower exposures, with 16% and 13% of their total gas distribution allocated to these segments, respectively.

In Noida, the minimum waiting period for booking a domestic LPG cylinder refill has increased to 25 days, up from 21 days, indicating a growing strain on gas supply. The region has around 10 lakh LPG connections, while Ghaziabad has 12 lakh. Of these, approximately 8,000 connections in Noida and around 15,000 in Ghaziabad are classified as commercial.

Despite the curtailment, the supply of PNG and CNG in western Uttar Pradesh has continued without interruption. The gas supply network in this region is connected to the Hazira-Vijaipur-Jagdishpur pipeline operated by GAIL (India) Limited, which plays a crucial role in maintaining supply stability.

Authorities have issued directives to ensure that domestic consumers do not face inconvenience in LPG supply, reflecting the government’s commitment to prioritize household needs amid the ongoing supply challenges. However, the focus on domestic consumers raises questions about the future availability of gas for industrial and commercial users.

As the situation develops, industry observers are closely monitoring the impacts on IGL and other companies, particularly as the curtailment could reshape the landscape for gas distribution in the region. Details remain unconfirmed regarding the long-term implications of these changes.

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