Urea production at two major fertiliser plants of National Fertilisers Limited (NFL) in Punjab — located in Nangal and Bathinda — has been halted following a sharp reduction in liquefied natural gas (LNG) supply. The cut in gas supply was implemented by Gas Authority of India Limited (GAIL), which distributes natural gas to industrial units across the country.

According to officials and industry sources, the LNG supply to these plants was reduced by nearly 40 per cent. As natural gas is the primary feedstock used in urea manufacturing, the reduction made it difficult to maintain normal production operations.

The shutdown of these plants has raised concerns about fertiliser availability ahead of the upcoming kharif cropping season, when the demand for urea increases significantly among farmers.

Maintenance Shutdown Advanced

Sources said the Nangal unit had planned to shut down in April after achieving its annual production targets. However, due to the gas shortage, the shutdown schedule was advanced to early March. Officials used this period to undertake maintenance and repair work at the facility.

The Bathinda plant has also stopped production due to similar constraints in gas supply. Meanwhile, other NFL units in the country continue to operate, though at varying capacities. The Panipat plant in Haryana is running at full capacity, while the Vijaypur unit in Madhya Pradesh is operating at about half of its capacity.

International Tensions Behind Disruption

The reduction in LNG supply is reportedly linked to geopolitical tensions in the Middle East, particularly the conflict involving Iran and the United States. These tensions have disrupted energy infrastructure and affected LNG shipments from Qatar, which supplies a major portion of India’s natural gas imports.

Qatar accounts for nearly 60 per cent of India’s LNG imports through companies such as Indian Oil and Petronet LNG. The disruption in supply forced GAIL to ration gas among various industrial consumers, including fertiliser plants.

Additionally, authorities have reportedly prioritised piped natural gas for domestic consumption over LNG supplies to industrial units during the shortage.

Impact on Farmers and Fertiliser Supply

Experts warn that prolonged disruption in urea production could affect fertiliser availability in Punjab and neighbouring states. Urea is a critical nutrient for crops, especially during the kharif season when crops such as paddy require significant fertiliser input.

National Fertilisers Limited is a key public-sector fertiliser manufacturer in India with multiple gas-based urea plants across the country, including those in Nangal, Bathinda, Panipat and Vijaipur.

To prevent a potential shortage, the central government may consider importing additional urea from countries like China and Russia to bridge the gap in domestic production.

Industry experts believe the situation will depend on how quickly global LNG supplies stabilise. If gas availability improves, production at the affected plants may resume soon, helping to ensure adequate fertiliser supply for farmers.