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Informist, Wednesday, May 6, 2026

 

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--Gujarat Gas official: Bought 3 LNG cargoes at $15-$19/mBtu for May arrival
--Gujarat Gas official: LNG cargoes coming from US, Angola, Australia
--Gujarat Gas official: Demand for natural gas from Morbi tile makers rising
--Gujarat Gas official: Currently selling 5 mscmd natural gas at Morbi
--Gujarat Gas official: LNG sales to Morbi seen at 7.5 mscmd by May-end
--Gujarat Gas official: Selling natural gas at INR 73/standard cubic metre
 

 

By Sunil Raghu

 

AHMEDABAD – Gujarat Gas Ltd. has bought three cargoes of liquefied natural gas to be delivered to Indian shores by the end of May, a senior company official said on condition of anonymity. "Two of these three cargoes are replacements for LNG we were to receive from Qatar if this military conflict had not happened and the Strait of Hormuz would not have become a difficult place to navigate ships," the official said. "This has only increased our costs."

 

Gujarat Gas has contracted the cargoes at $15-$19 per million British thermal units equivalent. The cargoes would arrive from Australia, Angola, and the US. A typical LNG cargo vessel carries a volume of 3.2 trillion British Thermal Units. Priced at $15 per mBtu, the cost of one LNG cargo vessel comes to nearly $45 million-$48 million.

 

"The cargoes we had tied up with Qatar were at a lower cost as they were done before the military conflict began. However, compared to spot cargoes costing a little over $22 per mBtu that we had to buy soon after the beginning of West Asian military conflict, these new cargoes are priced a tad better," the official said.

 

The Gujarat Gas official said they had contracted these LNG cargoes amid rising demand for natural gas. "In fact, the demand for natural gas is rising for us. We sold less than 2 million standard cubic meters per day of natural gas to ceramic tile makers of Morbi before Feb. 28, the day West Asian military conflict started. Today it (sale) stands at over 5 mscmd and by end May it should be back to our all-time peak sale of 7.5 mscmd," he said.

 

Gujarat Gas had issued force majeure notices to its industrial customers on Mar. 4, stating that the daily contracted quantity would be restricted from Mar. 6. Such notices are generally issued when the contractual counterparty is unable to comply with the terms of the signed contract due to unforeseen circumstances.

 

Gujarat Gas has signed a one-year minimum-guarantee offtake obligation contract for natural gas supply with nearly 700 tile makers in Morbi, with dynamic pricing. The price per unit is fixed monthly, with the average natural gas price currently at INR 73 per standard cubic meter.

 

Morbi, with over 2,500-3,000 tile-making units, is considered one of the key hubs for this business in the country. "What has also helped increase the volume sales for natural gas here is non-availability of alternative fuel propane, which the government of India has asked suppliers to divert to critical areas of the economy in the wake of high global crude oil prices," the official said.

 

For the December quarter, Gujarat Gas reported a net profit of INR 2.66 billion on revenue of INR 38.65 billion. Wednesday, the company's shares ended at INR 397.55 on the National Stock Exchange, up 2.4% from the previous close.

End

 

US$1 = INR 94.61

 

Edited by Saji George Titus

 

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