The queues for LPG cylinders were the first visible sign. Now, a more subtle shift — occasional pressure fluctuations in kitchen pipelines — may be emerging. India’s gas situation, triggered by disruptions in West Asia, could be gradually extending from cylinders to piped natural gas (PNG), bringing the impact closer to households and factories.
The trigger lies far beyond India’s borders. Qatar’s Ras Laffan — the world’s largest LNG export hub has faced disruptions, and for India, that matters significantly. Nearly 41–47% of India’s LNG imports typically come from Qatar, much of it routed through Ras Laffan. At the same time, over half of India’s LNG cargoes and nearly 90% of LPG imports pass through the Strait of Hormuz, a key chokepoint now under stress.
Put simply, when Hormuz tightens, India’s energy supply chain can come under pressure.
So far, the visible strain has been largely in LPG distribution. However, the same underlying dynamics may begin to affect PNG as well. The reason is structural: both LPG and PNG are linked to the same upstream source imported natural gas.
What do industry experts say?
An industry expert, speaking on condition of anonymity, said that while the system has buffers, prolonged disruptions could have wider implications. “City gas networks operate on tight supply-demand balancing. If LNG cargo flows from a major source like Ras Laffan remain disrupted for an extended period, the first impact is typically seen in industrial allocation. Over time, if the situation persists, some stress could also be felt in domestic PNG supply,” the expert said.
“Because of the ongoing govt push to adopt PNG connections, thousands of households have switched to PNG in the last 60 days. In many neighborhoods, the “last-mile” pipes were not originally sized for this many active stoves at once,” he added.
As of January 31, 2026, CGD entities have reported about 1.65 crore PNG connections, of which 1.03 crore consumers are actively using the fuel.
According to the ministry, since March 2026, about 3.6 Lakh PNG connections have been gasified. Further, more than 3.9 Lakh customers have been registered for new connections.
What has changed in recent weeks is the scale and pace of global developments.
Tightening supply conditions
Supply conditions have tightened following attacks on energy infrastructure in West Asia. Estimates suggest that a portion of Qatar’s LNG capacity may be affected, leading to cargo adjustments and some diversion of supplies. For India, this has coincided with tighter availability and a need to manage distribution more carefully across sectors.
India has already begun adjusting its sourcing strategy in response.
India’s LNG imports fell 12.5% month-on-month to 1.68 million tonne (mt) in March. Qatar’s share — once as high as 40% — dropped sharply to 3.6%, reflecting a significant shift in sourcing patterns. Imports had already declined from 2.57 mt in January to 1.92 mt in February, marking a cumulative fall of over 34% in two months amid rising global prices and supply uncertainties.
To manage the situation, the government and importers have moved to diversify supplies. Additional cargoes are being sourced from markets such as the United States, Australia and parts of Africa, while companies are also tapping the spot LNG market where feasible.
Public sector firms such as Petronet LNG, along with oil marketing companies, are actively managing cargo portfolios, rescheduling shipments and exploring short-term procurement options to bridge gaps. Officials in the petroleum ministry are also coordinating closely with stakeholders to ensure that supply to priority segments — including households and essential industries remains stable.
These measures appear to be helping contain the immediate impact, even as global uncertainties persist.
At the same time, analysts tracking the sector say the situation highlights an underlying vulnerability. India’s city gas distribution network depends heavily on imported LNG, and any prolonged disruption at key supply hubs or transit routes could tighten availability, particularly for industrial consumers.
For now, households continue to be prioritised, and the initial adjustment has largely been absorbed by industry.
In several industrial clusters, PNG supply has dropped to 55–65% of normal levels, forcing factories to cut output or shift to more expensive fuels. Prices have surged, with industrial PNG in some regions rising to over ₹115 per standard cubic metre, sharply increasing input costs.
Even so, the impact on households remains limited and uneven at this stage.
Some reports of low-pressure PNG supply in cities suggest that system buffers — including LNG inventories and pipeline balancing may be gradually thinning. In parts of Delhi-NCR, residents have begun noticing minor changes. “The flame has been weaker over the past few days, especially during peak hours. Cooking is taking a bit longer,” said a Noida resident.
However, there is no widespread disruption so far, and supply to domestic users continues to be maintained.
The broader shift, though, is significant. India has long promoted PNG as a cleaner, more efficient alternative to LPG, with the advantage of continuous supply through pipelines. But the current situation underscores that the distinction is largely at the point of delivery. At the source, both fuels remain part of the same import-dependent ecosystem.
Meanwhile, this is not the first such episode.
The Russia-Ukraine conflict had earlier disrupted oil markets, prompting India to diversify crude sourcing. The current situation in West Asia adds another layer, this time affecting gas — a fuel increasingly important for urban consumption and industrial use.
Together, these episodes underline a broader structural issue: reliance on imported fuels routed through geopolitically sensitive regions.
The economic implications are wide-ranging.
Gas supports fertiliser production, petrochemicals, city transport and a large number of MSMEs. Any tightening of supply or increase in prices can ripple through these sectors, affecting costs and output.
The government’s response so far has focused on managing the near-term situation while minimising disruption.
Supply has been prioritised for households and essential sectors. Domestic LPG production has been ramped up, and refineries are operating at high utilisation levels. Officials have indicated that fuel availability remains adequate for the coming weeks, supported by active supply management.
Beyond the immediate response, policymakers are also looking at longer-term measures. These include further diversifying LNG sourcing, strengthening long-term contracts with multiple suppliers, and exploring options to enhance storage and buffer capacity.
Such steps are aimed at reducing exposure to short-term disruptions, though their impact will take time to materialise.
For now, the situation remains manageable, but uncertain.
If global supply conditions stabilise, the current pressures may ease without significant impact on households. However, if disruptions persist or intensify, the effects could become more visible across sectors, including city gas networks.