Why Adani Total Gas shares surged 40% in 2 days
What's the story
Adani Total Gas's shares have witnessed a massive surge, rising up to 14.2% on Thursday to hit an intraday high of ₹650 on the BSE. The two-day rally has seen the company's stock rise nearly 39%, outperforming the broader market amid weak sentiment. The spike comes after the government issued the Natural Gas (Supply Regulation) Order, 2026, prioritizing gas supplies to essential sectors amid supply disruptions due to ongoing Middle East conflict-driven disruptions.
Supply prioritization
Government order prioritizes gas supply to essential sectors
The government order notes that liquefied natural gas shipments through the Strait of Hormuz have been disrupted due to the conflict. Suppliers are invoking force majeure clauses and diverting supplies to priority sectors. The notification states that natural gas supply will be prioritized for domestic piped natural gas consumers and compressed natural gas used in transport, with allocations maintained at 100% of average consumption over the past six months, subject to operational availability.
Corporate response
Adani Total Gas welcomes government decision
Adani Total Gas has welcomed the government's decision, saying it would help safeguard essential energy supplies for households and the transport sector. The company also revealed that some of its gas suppliers have curtailed supplies due to escalating geopolitical tensions in West Asia. This has affected its ability to serve certain industrial customers and reduced the availability of gas for industrial supply.
Compliance directive
Entities involved in natural gas production, marketing directed to comply
The government order has also directed all entities involved in the production, import, marketing, transportation, and supply of natural gas to comply with revised supply schedules and sector-wise allocations. These are to be coordinated through GAIL and the Petroleum Planning and Analysis Cell.
Price surge
Spike in gas prices in India
The closure of the Strait of Hormuz has led to a spike in gas prices in India. Domestic cooking gas prices have gone up by ₹60 per cylinder, while commercial LPG rates have increased by ₹114.5. Last week, European natural gas prices also surged nearly 40% after Qatar Energy halted production at a key LNG facility amid escalating tensions in the Middle East.