West Asia Crisis: Adani Total Gas Faces Supply Challenges

Adani Total Gas Ltd has maintained pricing for CNG and household piped gas, despite imposing supply restrictions on large industrial consumers. This decision comes amid supply chain disruptions from the West Asia crisis, which have impacted natural gas imports through the Strait of Hormuz.

Adani Total Gas Ltd (ATGL) has decided to maintain its current pricing for compressed natural gas (CNG) and piped cooking gas supplied to households, officials revealed on Friday. This decision comes as the company imposes supply restrictions on some large industrial consumers due to disruptions in gas imports caused by the escalating West Asia crisis.

A company official noted that approximately 70% of ATGL's gas volumes are domestically sourced and provided to CNG and piped natural gas (PNG)-domestic customers, keeping prices stable for vehicle owners and residential households. The remaining 30% of the gas volume is secured through imported LNG, primarily serving commercial and industrial users.

Due to the disruption in importing fuel, especially since the Strait of Hormuz's closure, ATGL asked commercial and industrial clients to limit their consumption to 40% of contracted volumes. This is to manage the supply chain effectively while offering consumers flexibility to explore alternative fuel sources.

(With inputs from agencies.)