Gas shortages linked to ongoing Middle East conflicts have severely disrupted operations at multiple JSW Group steel plants in India, with at least one unit facing a potential shutdown as fuel shipments and maritime logistics continue to be affected. 

The crisis has put JSW's ability to honour sales and supply commitments at risk, particularly for tinplate production under the government's production-linked incentive scheme, leading the company to seek a six-month extension to meet its obligations. 

Adding to the pressure, key LNG supplier Petronet LNG Ltd issued a force majeure notice after geopolitical tensions disrupted shipments, deepening uncertainty around JSW's fuel supply chain. 

The difficulties extend beyond JSW, with the Indian Steel Association warning that propane and liquefied petroleum gas shortages could severely impact the micro, small and medium enterprises connected to the broader steel sector. 

In response, India has introduced emergency gas allocation measures for essential industries, while industry bodies are pressing the government to fast-track subsidised spot imports from alternative regions to safeguard production and protect jobs.