Morbi Ceramic Units Revive as Gujarat Gas Stabilizes Fuel Supply Amid Crisis

According to officials, the recovery follows joint efforts by GGL and the Morbi Ceramic Association after a period of severe strain triggered by volatility in global liquefied natural gas (LNG) markets and supply disruptions linked to geopolitical tensions earlier this year.​

Before the crisis started in February, 377 industrial consumers in Morbi were using piped natural gas (PNG) supplied by GGL, while around 415 units depended on propane provided by oil marketing companies such as Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).​

These propane-dependent units accounted for nearly 70 per cent of the total daily fuel consumption, amounting to about 5.6 MMSCMD (natural gas equivalent).​

GGL said its supply had increased in early March, but disruptions in global LNG availability due to the US-Iran conflict led to constraints.​

In line with directions from the central government, the company curtailed supply to approximately 80 per cent of the average consumption over the previous six months.​

The combined impact of higher production costs, restrictions on propane availability and increased freight rates forced several ceramic units to voluntarily suspend operations from mid-March.​

In response, GGL engaged with manufacturers to facilitate a shift from propane to natural gas and arranged additional supplies despite elevated international prices.

​The company stated that it continued gas distribution in April in accordance with government norms and sourced adequate volumes from international markets outside the Middle East at prevailing rates to meet industrial demand.​

LNG prices in the global market have remained high, at $18-20 per MMBtu.​

"Amid the current challenges, GGL stands firmly with Morbi's ceramic industry. Through mutual trust, we will overcome these difficulties and take the industry to new heights," the statement said.​

GGL added that its teams remain in continuous coordination with industry representatives to address pricing and supply issues as the sector works to restore normal operations.

- IANS