Gas Stocks Rise as Supply Concerns Subside Following Government Intervention

Indian Gas Stocks Rally Amid Government Efforts to Stabilize Supplies

Market Overview On Thursday, shares of city gas distribution and LNG companies surged, with several gas-linked stocks gaining sharply after the government moved to stabilize supplies amid disruptions linked to the Middle East conflict.

Market Performance At 11:55 am, the Sensex was down nearly 500 points or 0.65% at below 76,400, while the Nifty fell over 150 points to hover just above 23,700. However, energy-linked stocks bucked the trend, with the Nifty Energy index rising about 1.9% and the Nifty Oil & Gas index gaining around 0.9%.

Individual Stock Performance Among individual stocks, Adani Total Gas surged over 9%, emerging as the biggest gainer in the gas pack. Other gas companies also traded firmly higher, with GAIL (India) stock rising about 3.1%, Gujarat Gas gaining nearly 2.9%, Mahanagar Gas climbing about 2.2%, and Petronet LNG advancing around 1.8%.

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Government Efforts The rally in gas stocks followed the government’s move to stabilize domestic fuel supplies amid geopolitical disruptions affecting LNG shipments through the Strait of Hormuz. The Ministry of Petroleum and Natural Gas said India has started receiving additional cargoes of LNG and LPG to offset supply disruptions caused by the ongoing Middle East conflict.

Supply Chain Developments According to ministry officials, two LNG cargoes are already on their way to India, while state-run oil marketing companies have secured additional crude shipments from multiple countries. Officials added that around 75% of crude supplies are now coming from routes other than the Strait of Hormuz, compared with about 55% earlier, helping reduce supply risks.

India's Gas Consumption India consumes about 189 million metric standard cubic metres per day (MMSCMD) of natural gas, of which 97.5 MMSCMD is produced domestically, while the remainder is imported. Officials said around 47.4 MMSCMD of gas supply has been affected due to force majeure conditions, following disruptions linked to the conflict.

Government Measures The government has invoked emergency powers under the Natural Gas (Supply Regulation) Order, 2026, prioritizing gas allocation for essential sectors such as domestic piped gas supply, CNG for transport, LPG production, and pipeline operations.

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