Mahanagar Gas Limited has informed the Exchange about General Updates
MGL · price
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Awaiting price reaction for this filing.
Mahanagar Gas Limited (MGL) has informed stock exchanges that some of its gas suppliers have curtailed supply due to ongoing Middle East conflict and disruption of LNG shipments through the Strait of Hormuz, impacting the company's gas supplies to its Industrial and Commercial (I&C) customers. The Ministry of Petroleum and Natural Gas has issued the Natural Gas (Supply Regulation) Order, 2026 dated March 9, 2026, directing City Gas Distribution (CGD) entities like MGL to maintain gas supply to I&C consumers at 80% of their past 6-month average consumption, while prioritising domestic PNG and CNG (transport) at 100% of past 6-month average. The Order mandates curtailment of gas supply to petrochemical facilities (including ONGC, GAIL Pata, Reliance O2C), power plants, and refineries (capped at ~65%) to free up volumes for priority sectors. MGL has initiated steps to comply with the Order and is currently assessing the impact, promising further updates as the situation evolves.
Near-term negative for MGL — gas volumes to higher-margin I&C customers will be restricted, potentially hitting revenues and profitability. However, MGL's core CNG (transport) and domestic PNG businesses are fully protected under the top priority tier, providing a cushion. The long-term financial impact will depend on the duration of supply disruption and whether compensation/price pooling mechanisms are introduced.