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Adani Total Gas Cuts Industrial Gas Prices by 30% Amid Supply Disruptions

Adani Total Gas has announced a significant reduction in the price of excess natural gas supplied to certain industrial customers, slashing it from Rs 119.90 to Rs 82.95 per standard cubic metre. The price cut, effective March 16, is attributed to softer upstream gas prices amid ongoing supply disruptions linked to the West Asia crisis. The company had previously asked commercial and industrial users to limit consumption to 40% of contracted volumes due to LNG supply issues. While passing on cost benefits, the firm has kept other terms for excess gas supply unchanged and has not raised prices for household CNG and piped cooking gas.

Key Points: Adani Total Gas Slashes Excess Gas Price for Industries by 30%

  • 30% price cut for excess gas
  • Effective from March 16
  • Response to softer upstream prices
  • Supply disruptions from West Asia crisis
  • Terms for excess supply unchanged
2 min read

Adani Total Gas slashes excess gas price for industries by nearly 30 pc

Adani Total Gas reduces excess natural gas price for industrial customers by nearly 30%, effective March 16, amid West Asia supply disruptions.

"The move is aimed at passing on the benefit of lower upstream gas prices to customers while ensuring stable and fair distribution of gas. - Adani Total Gas"

Ahmedabad, March 15

Adani Total Gas Limited announced on Sunday that it has reduced the price of excess natural gas supplied to certain industrial customers after upstream gas prices softened amid ongoing supply disruptions linked to the West Asia crisis.

The company said the price of excess gas will be cut to Rs 82.95 per standard cubic metre (SCM) from Rs 119.90 per SCM.

The revised rate will come into effect from 6:00 am on March 16. Adani Total Gas, a city gas distribution joint venture between the Adani Group and France's TotalEnergies, said the move is aimed at passing on the benefit of lower upstream gas prices to customers while ensuring stable and fair distribution of gas during the current supply constraints.

The company had earlier asked commercial and industrial users to reduce their gas consumption to 40 per cent of their contracted volumes after India's LNG supplies were disrupted due to the halt in ship movement through the Strait of Hormuz amid the ongoing conflict in West Asia.

Customers using gas beyond this limit were charged spot market rates for the additional volumes.

While the excess gas price has now been reduced, the company said other terms related to excess gas supply remain unchanged.

In a communication to users, the company said the price revision was carried out to reflect the decline in upstream gas prices while maintaining system stability during the ongoing supply disruptions.

It also said it has sought clarification from GAIL (India) Ltd regarding the 80 per cent supply to industrial customers under the existing order.

Earlier this month, the company had decided not to increase the prices of CNG and piped cooking gas supplied to households despite the supply challenges.

Around 70 per cent of the gas supplied by Adani Total Gas is sourced domestically and is used for CNG vehicles and piped natural gas for households.

The remaining nearly 30 per cent is imported LNG, which is mainly supplied to commercial and industrial users.

- IANS

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Reader Comments

P
Priyanka N
Good to see they are passing on the benefit of lower upstream prices. But the core issue remains - we are still capped at 40% of our contracted volume. How are industries supposed to run at full capacity? The West Asia crisis is hitting us hard. 🇮🇳
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Sarah B
Interesting to see the breakdown - 70% domestic gas for households/CNG and 30% imported for industry. Explains why they protected CNG and PNG prices. Smart prioritization for essential needs during a supply crunch.
A
Aman W
Reduction is okay, but Rs 82.95/SCM is still quite high compared to the contracted rate, no? This feels like a small relief, not a solution. The government needs to fast-track more domestic exploration. Atmanirbhar Bharat should mean energy security first.
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Karthik V
Appreciate the step. In these uncertain times, any cost reduction helps. Hope the situation in West Asia stabilizes soon. Our prayers for peace in the region. 🙏
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Nikhil C
While I welcome the price cut, the communication could be better. Many industrial users are confused about the 80% supply clarification they've sought from GAIL. More transparency would build greater trust.

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