LPG shortage: Power supply to Bengaluru might be hit by natural gas priority list issued by Centre

Power generation in Karnataka could face disruption following the Central Government’s decision to prioritise natural gas supply to select sectors amid a shortage linked to the ongoing war in West Asia involving US-Israel and Iran, according to sources in the Energy Department.

The Centre recently issued a gazette notification under the Natural Gas (Supply Regulation) Order, 2026, prioritising sectors for gas allocation as the country faces supply constraints triggered by the US-Israel–Iran conflict in West Asia. Under the order, domestic consumption has been given the highest priority while power generation has been placed at the lowest level.

Officials said the decision has affected the State’s only gas-based power plant at Yelahanka in Bengaluru.

“Following the Centre’s notification prioritising natural gas allocation, gas supply to the Yelahanka gas-based power plant was completely stopped from 6 a.m. on March 12. Since power generation has been placed at the lowest priority category, supply to the sector is expected to remain restricted until the current shortage eases,” the Energy Department stated.

The 370 MW Yelahanka plant, operated by KPCL, is Karnataka’s only gas-based power generation facility and primarily supplies electricity to Bengaluru. An official informed that any disruption in gas supply could affect power production at the plant.

“The Yelahanka unit has been operating continuously since December 2025 to support the power requirements of Karnataka. However, the ongoing natural gas shortage triggered by the West Asia conflict may affect generation at the plant,” the official said.

Karnataka’s daily electricity demand currently stands at around 355 million units. The State is meeting this demand through a mix of thermal and hydel power plants, renewable sources such as solar and wind energy, and power drawn from the Central grid.

Officials said that the government of Karnataka is currently generating electricity from all available sources to ensure uninterrupted supply, particularly during periods of peak demand.

“In addition to local generation, Karnataka is procuring power through exchange arrangements with Punjab, Uttar Pradesh and Haryana to maintain grid stability,” Energy Department sources added.

However, the department cautioned that continued restrictions in natural gas supply could lead to a minor disruption if alternative sources are not sufficient to bridge the gap.

Who gets priority

Under the Centre’s notification, top priority for natural gas allocation has been given to domestic piped natural gas (PNG), LPG production, compressed natural gas (CNG) used for transport, and essential pipeline operations, all of which are required to receive 100% of their average gas consumption over the past six months.

Fertiliser plants have been placed in the second category. They will receive around 70% of their average consumption. Undustrial consumers have been placed in the third category, and commercial consumers in the fourth category.

“Power generation, placed at the lowest priority, is likely to receive gas supply only after the needs of higher priority sectors are met,” the department stated.