Adani Total Gas Maintains CNG and Cooking Gas Prices Amid Supply Disruptions
Stable Pricing for CNG and Piped Gas
Ahmedabad, March 6: Adani Total Gas Ltd (ATGL) has decided to keep the prices of compressed natural gas (CNG) for vehicles and piped cooking gas steady, even as gas supplies face challenges due to the ongoing conflict in Iran, as confirmed by company representatives on Friday.
According to an ATGL spokesperson, approximately 70% of the gas supplied by the company is sourced locally, which is then distributed to retail CNG stations for vehicles and as piped natural gas for household cooking. The pricing for these consumer segments remains unchanged. However, there has been a noticeable decrease in gas supply to larger industrial clients due to disruptions in natural gas imports, particularly following the blockade of the Strait of Hormuz amid rising tensions in the Middle East.
ATGL, a collaboration between the Adani Group and the French energy firm TotalEnergies, imports around 30% of its gas as liquefied natural gas (LNG), which is primarily allocated to commercial and industrial users.
In light of the supply chain issues stemming from the Iran conflict, commercial and industrial customers have been advised to reduce their consumption to 40% of their contracted amounts, the official noted.
The conflict in Iran and its repercussions across Gulf nations have led to a halt in maritime traffic through the Strait of Hormuz, a crucial passage for oil and gas exports. Additionally, Qatar, a key LNG exporter, has suspended shipments following missile strikes from Iran targeting US military bases in the region.
Notably, around 20% of global oil and gas exports transit through the Strait of Hormuz, meaning any disruption in shipping can significantly impact supply and drive up prices in the international market.
ATGL customers will continue to be charged at their agreed rates for consumption up to the 40% threshold, while any additional purchases will be subject to spot market pricing.
The company has stated that it is committed to ensuring a steady supply of gas while navigating the current supply challenges and safeguarding consumer interests across all sectors.