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Adani Total Gas Soars 20% on Govt's Priority Gas Supply Order

Shares of Adani Total Gas surged 20% to hit the upper circuit after the government issued an order giving priority allocation for domestic PNG and CNG supplies. The stock saw heavy trading with volumes jumping more than 20 times on the exchanges. Other gas stocks like Gujarat Gas, Petronet LNG, and GAIL also advanced during the session. The company stated the government's quick action helps secure supply for domestic and commercial customers amid curtailments from some gas suppliers due to geopolitical tensions.

Key Points: Adani Total Gas Jumps 20% on Priority Gas Allocation

  • Stock hits 20% upper circuit
  • Govt prioritizes PNG & CNG supply
  • Trading volumes surge 20x
  • Other gas stocks also rally
  • Company explores bio-fuel & hydrogen ventures
2 min read

Adani Total Gas shares jump 20 pc, other gas stocks also advance

Adani Total Gas shares hit upper circuit after govt order prioritizes PNG & CNG supply. Other gas stocks like Gujarat Gas also rally.

"The Company appreciates the Government's prompt efforts... according priority for the gas supplies - Adani Total Gas"

Ahmedabad, March 11

Shares of Adani Total Gas surged 20 per cent to hit the upper circuit on Wednesday, extending gains even as India faces a deepening natural gas supply crunch.

The sharp rally came after the company said domestic piped natural gas (PNG) and compressed natural gas (CNG) used for transport have received priority allocation under a recent order by the Indian Government.

The stock also witnessed heavy trading activity during the session. Average volumes at the counter jumped more than 20 times, with a combined 16.44 million shares changing hands on the National Stock Exchange of India and the BSE.

The company operates in the city gas distribution business, supplying natural gas to domestic, commercial, industrial and vehicle users.

Other gas stocks also followed suit and surged during intra-day trade despite market sell-off.

Gujarat Gas jumped nearly 12 pc to Rs 420 and end 3.96 per cent higher at Rs 390 during the session.

Petronet LNG, GAIL (India), Indraprastha Gas (IGL) and Mahanagar Gas (MGL) are the other gas-linked companies which saw buying during the session and end higher up to 2 per cent.

Apart from its core operations, Adani Total Gas is also exploring opportunities in areas such as bio-gas, bio-fuel, biomass, liquefied compressed natural gas, hydrogen-enriched compressed natural gas, electric vehicles and hydrogen-related businesses.

In a regulatory filing, Adani Total Gas said that escalating geopolitical tensions in the Middle East have led some of its gas suppliers to curtail supplies.

This has affected the company's ability to provide gas to certain industrial customers.

The company said it appreciates the government's quick action in issuing the order and prioritising gas supply for domestic PNG and CNG users, as well as supplies for industrial and commercial customers.

"The Company appreciates the Government's prompt efforts in bringing out the said order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers," it said.

- IANS

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Reader Comments

P
Priya S
Good to see the stock surge, but let's not forget the supply crunch mentioned. The geopolitical tensions affecting supply are a real concern. We need to fast-track our own biogas and green hydrogen projects for true energy security. Adani exploring these areas is a step in the right direction.
R
Rohit P
20% upper circuit! Wish I had bought some shares last month. The entire gas sector is rallying. Gujarat Gas up 12% is huge. Shows investor confidence in the government's policy support for city gas distribution.
S
Sarah B
While the priority allocation is pragmatic, it's a reactive measure. The article hints at the core issue: dependence on imports from volatile regions. The focus should be on building resilient domestic energy infrastructure, not just stock market rallies.
V
Vikram M
This is crucial for cities like Delhi where CNG vehicles are everywhere. Any disruption in supply causes chaos and long queues at stations. Government's quick order is appreciated. Hope GAIL and IGL also benefit and pass on stability to end consumers.
K
Karthik V
Heavy trading volume of 16 million+ shares! The market is betting big on the gas sector's future. The diversification into EVs and hydrogen is smart. India's energy transition story has strong legs. 🇮🇳

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