Adani Total Gas Share Price Jumps 14% As LNG Supply Fears Boost City Gas Stocks

Adani Total Gas share price surged sharply on Thursday, March 12, even as the broader Indian stock market remained under pressure. The stock jumped over 14% intraday to ₹650 on the BSE, extending gains after rallying nearly 20% in the previous session.

The rally came as investors reacted to tightening global natural gas supplies and a government directive prioritising gas allocation for essential segments such as CNG used in transport and piped natural gas (PNG) supplied to households. 

Other city gas distributor (CGD) stocks, including Gujarat Gas and Indraprastha Gas, also traded higher amid expectations of improved pricing power and stronger earnings visibility.

Global LNG Supply Concerns Trigger Energy Stock Rally

The surge in CGD stocks follows escalating geopolitical tensions in the Middle East that have raised concerns about disruptions to global LNG supplies.

Qatar, which accounts for nearly 20% of global LNG exports, reportedly shut down the Ras Laffan export facility after an Iranian drone strike last week. The disruption sent gas prices in European and Asian markets sharply higher and sparked concerns about supply availability.

India is particularly exposed to such disruptions as it imports around half of its LNG requirements, with Qatar being a major supplier. According to market sources cited by Bloomberg, Indian buyers are now seeking alternative LNG cargoes for immediate delivery.

Govt Prioritises CNG and PNG Gas Allocation

Amid tightening supplies, the government issued a Natural Gas Supply Regulation Order, prioritising gas allocation for critical segments such as CNG used in transportation and PNG supplied to households.

This policy move is being viewed positively for city gas distributors, whose business models are closely tied to these segments. Investors believe the prioritisation ensures stable demand and supply visibility for CGD companies despite broader market volatility.

Adani Total Gas also confirmed that some suppliers had curtailed gas deliveries, which has impacted supply to industrial customers.

Higher Industrial Gas Prices Support Earnings Outlook

Tighter global supplies have also allowed CGD companies to raise prices for industrial consumers. According to a PTI report, Adani Total Gas increased industrial gas prices to around ₹119 per standard cubic metre from about ₹40 earlier.

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Conclusion

The rally in city gas distributor stocks reflects a mix of global supply concerns, supportive government policy, and improved pricing dynamics. As energy security becomes a growing theme for investors, companies operating in essential energy infrastructure such as CNG and PNG distribution are increasingly being viewed as defensive plays within the broader energy sector. 

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