Reliance to divert KG-D6 gas to priority sectors as LPG crunch hits major cities

Reliance Industries on Tuesday said it will divert natural gas from its offshore KG-D6 Basin to priority sectors and ramp up LPG production from its Jamnagar refining complex, as several Indian cities grapple with supply disruptions triggered by the ongoing conflict in West Asia.

Hotels and restaurants in Bengaluru, Mumbai, Chennai and Kolkata have reported commercial LPG shortages, with industry bodies warning of operational disruptions if supplies do not normalise soon.

In a media statement, Reliance said it is taking steps to maximise LPG output from its refining and petrochemical operations at the Jamnagar Refinery, the world’s largest integrated refining hub.

Why is India facing an LPG supply crunch?

The shortage comes as escalating tensions in West Asia threaten energy supply chains and shipping routes through the region, which accounts for a large share of India’s LPG imports.

India imports more than half of its LPG requirement, with a major portion sourced from producers in the Gulf. Any disruption in tanker movement or export flows from the region can quickly tighten domestic availability.

Industry groups representing restaurants and hotels have said commercial LPG cylinder deliveries have slowed in recent days, forcing several establishments to cut menu items or warn of possible shutdowns if the situation persists.

What steps has the government taken?

The union government has taken steps to prioritise LPG availability for domestic consumers, directing oil marketing companies to ensure household cooking gas supplies remain unaffected.

The government has also been coordinating with domestic producers and refiners to boost output and stabilise supplies.

Separately, Karnataka chief minister Siddaramaiah has written to union petroleum minister Hardeep Singh Puri seeking urgent intervention to address shortages affecting Bengaluru’s hospitality sector.

Reliance said natural gas produced from the KG-D6 basin will be diverted to sectors identified as priority under government allocation guidelines.

Gas from the block is typically supplied to fertiliser plants, city gas distribution networks and power producers.

By diverting supplies to priority users and boosting LPG output at Jamnagar, the company said it aims to support domestic energy availability at a time when global markets are facing heightened volatility.