Ahmedabad, March 6: Despite disruptions in gas supply due to the ongoing conflict in Iran, Adani Total Gas Limited (ATGL) has decided not to increase the prices of Compressed Natural Gas (CNG) for vehicles and Piped Natural Gas (PNG) for households. Company officials confirmed this decision on Friday.
An ATGL representative stated that approximately 70% of the gas supply comes from domestic sources, which is distributed as retail CNG at filling stations and as piped cooking gas for homes. Currently, prices for both consumer categories remain unchanged. However, due to the impact of the Iran conflict, there has been a reduction in gas supply for large industrial consumers.
ATGL, a joint venture between the Adani Group and the French energy company TotalEnergies, imports about 30% of its total gas needs in the form of Liquefied Natural Gas (LNG). This gas is primarily supplied to commercial and industrial clients.
Due to supply chain disruptions caused by the Iran conflict, these industrial consumers have been instructed to utilize only 40% of their contracted gas volumes.
Tensions have escalated in several Gulf countries as a result of the Iran conflict, leading to a near halt in shipping traffic through the Strait of Hormuz, a crucial route to the Arabian Sea.
Additionally, Qatar, a major LNG exporter, has suspended gas shipments following missile attacks by Iran targeting U.S. facilities.
Globally, approximately 20% of oil and gas exports transit through the Strait of Hormuz. Any disruption in this route could significantly impact global supply and drive prices higher.
ATGL officials indicated that industrial customers will be billed according to their contracts, which allow for consumption of up to 40%. Any additional gas purchased will be charged at spot market rates.
The company asserts that it is making every effort to maintain a continuous gas supply and protect the interests of all consumers amid the current supply challenges.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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