Adani Total Gas Shares Surge on Supply Issues
Adani Total Gas shares have jumped 24% in five days, and 33% in the past three, amid major LNG supply disruptions. Supply curbs from West Asia have forced Adani Total Gas to ration deliveries, prioritizing residential and transport segments. The new Natural Gas Regulation Order 2026 has also intensified investor focus on domestic gas distributors.
The surge follows the government's Natural Gas (Supply Regulation) Order 2026, issued March 9, which prioritizes domestic PNG and CNG for transport. This order was enacted in response to Middle East geopolitical events impacting LNG shipments. Some suppliers have declared force majeure, curtailing gas deliveries, especially to industrial clients. The disruption stems from conflict in the Middle East, hampering shipping through the Strait of Hormuz. QatarEnergy, a major supplier, declared force majeure, triggering Petronet LNG to do the same with downstream buyers like GAIL. GAIL's LNG allocation from Petronet was reduced to zero from March 4, impacting city gas distributors like Adani Total Gas. Adani Total Gas is assessing the impact of the order and supply cuts, coordinating with authorities to mitigate effects. The company's stock jumped nearly 19% on March 11, even as they nearly tripled the price for gas consumed beyond imposed limits for industrial users. The government's order ensures 100% supply for domestic PNG and CNG, while fertilizer plants get 70% priority, and industrial/commercial consumers get 80%.
